How effective are gas tax holidays at helping motorists' wallets?

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How effective are gas tax holidays at helping motorists' wallets?
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As gas prices continue to soar across the country, three states have opted to temporarily waive their gas tax to provide relief for motorists. Other states are mulling similar plans.

Political pressure and desperation from commuters, businesses and other motorists have forced state leaders to think outside of the box, he said.

"If what they are doing is they are giving a 25-cent break on their gas, then what happens when gas goes up 25 cents in a few weeks anyway? You're now back in the same situation and the government is in a worse place. There are a lot of unknowns," Santangelo said. Santangelo said that lowering the price through a gas tax suspension does set up expected demand from motorists. He noted that this isn't the first time the country has experienced surging gas prices and it won't be the last time and a gas tax holiday may not work, especially if supply doesn't change.

California Gov. Gavin Newsom proposed a program last week that would provide $400 per vehicle to offset rising gas prices, for up to two vehicles per resident. The money would be funded with the state's budget surplus."It could turn into is something that the government keeps getting sucked into," Santangelo said.

"At this point, we have seen no issues related to supply and demand," Michael Ricci, a spokesman for Hogan's office, said in a statement to ABC News on Friday.Cars wait in line at a Costco gas station on March 10, 2022, in Tampa, Fla. "What our residents are looking for is that their government is listening to their concerns. We are trying to do something in our power to do something," Reiss told ABC News.Reiss added that the state continues to push residents to lower their demand for gasoline with programs such as tax incentives for electric car purchases.

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