Grand Canyon Times

As historic levels of inflation and soaring gas taxes are major concerns for Americans, Democratic governors across the nation are working to suspend their state's federal gas tax.

But, experts warn this short-term fix could actually make matters worse in the long run.

Maya MacGuineas is an opinion contributor for The Hill and president of the bipartisan Committee for a Responsible Federal Budget. She emphasized the dangers of a federal gas tax suspension – a quick fix for high pump prices proposed by many Democratic policymakers. She said a gas tax holiday would amplify the climate crisis and slow the development and adoption of cleaner technologies, among many risk factors.

"A gas tax holiday would exacerbate inflationary pressures and slow a needed transition to more energy-efficient and climate-friendly technologies, while cutting off a key source of infrastructure funding," MacGuineas said in the op-ed. "It’s a way for politicians to pretend they are making the situation better, when in fact they are making it worse."

MacGuineas predicted that once the gas tax holiday ends, inflation would be worse. 

"Rather than countering the highest inflation rates seen in decades, suspending the gas tax in an overstimulated economy would boost inflation in 2023, as surging demand coincides with re-imposition of the tax. Remember, it was excessive tax cuts and spending that helped get us into this inflation mess; they aren’t going to get us out of it."

The federal gas tax currently helps fund highway and transit spending through the Highway Trust Fund, so ridding the economy of this would defund our infrastructure and worsen our nation’s "already precarious fiscal situation," MacGuineas said in the op-ed. 

"The Committee for a Responsible Federal Budget estimates that suspending the gas tax through the end of the year would reduce that revenue by roughly $20 billion, nearly halving the trust fund’s revenue for the year," MacGuineas said.

Gas taxes already fail to keep up with rising infrastructure costs, a problem exacerbated by the rising popularity of electric vehicles, according to CNET. Some economists warn that a gas tax holiday would make the problem worse and fail to address issues involving the country's oil supply.

The current federal fuel tax rates are $0.184 per gallon for gasoline and $0.244 per gallon for diesel. In Arizona, the state gas tax amount is $0.18 per gallon.

In an effort to bring down gas prices, Sen. Mark Kelly (D-Ariz.) pushed Congress to pass a gas tax relief bill in early March, as reported by KOLD. Kelly’s bill would suspend the 18-cent per gallon tax through next January.

“And this legislation that I’m introducing today is an opportunity for us to save Americans money because gas prices are just too high,” Kelly said in early February, according to KOLD.

Gov. Doug Ducey (R-Ariz.) in mid-March expressed his disinterest in suspending the state’s gas tax, according to Tucson.com.

"We should be expanding energy production and not pursuing gimmicks," Ducey said. He noted that those dollars pay for road construction and repair projects in Arizona that need resources. "The inflation component of this and the rising gas prices began with the change in policies in the Biden administration," he said, citing Biden's cancellation of the country's Keystone XL Pipeline permits as the root cause.