Gas price spike pressures governors to lower taxes

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Gas price spike pressures governors to lower taxes
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Red and blue states alike are rushing to respond to soaring gas prices

ALBANY, N.Y. — Decades-high inflation was already giving Americans a headache. Then came Russia’s invasion of Ukraine, which sent gas prices soaring.

Not all states are jumping at the chance to lower gas taxes, saying the savings would be small. There’s also pressure from environmentalists and some unions who support the taxes to pay for infrastructure. “The gas tax doesn’t nearly pay for all the costs of roads and highways, but in New York it pays a substantial amount of the cost of our transit system,” said Danny Pearlstein, a spokesperson with the Riders Alliance, a transit advocacy group.

Florida lawmakers passed a one-month suspension of the state’s gas tax, scheduled for October, as part ofapproved Monday. Notably, the $200 million break will occur right before the general election. But Republican leaders said the timing was intended to ensure benefits flow primarily to residents because October is one of the lowest months for tourism.

Legislative Democrats prefer a rebate over toying with the state’s current gas tax formula, which they fought for in 2017 at a political cost, including a state senator being recalled over his vote. A rebate may have the added benefit of satisfying an obscure state requirement to give back money to taxpayers in high revenue years.

“I think there was a big collective sigh of relief when the governor came out and said, ‘Let’s focus on ways that we can just get money in people’s pockets.’”Tymon said there’s no guarantee that savings from cutting gas taxes would be passed on to consumers, whereas other relief mechanisms would have more control.

“I feel sympathy for our decision-makers who are leading the state and for the public, who’s suddenly burdened with a huge hike to their pocketbooks with these increased prices,” said Environment California state Director Laura Deehan.

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