Politics

Federal Gas Tax Holiday: Consumers Won’t See Much Relief

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While the idea of a gas-tax holiday sounds great at first, experts believe that it would create more problems than it solves. For one thing, the gas tax holiday does nothing to help with the rising gas costs for Americans. However, this plan is a temporary solution that would eventually be replaced with another method of raising new revenue. Those who favor this plan believe that the tax holiday would help stimulate the economy, but it is not clear that a tax reduction will do much to encourage a gas-dependent industry.

Many considered the tax holiday idea a gift to American drivers, but it will only give them a temporary break on their gas bills. In exchange for this “gift” of a tax break, the U.S. gas-tax collections will have $5 billion less in 2022. If no other sources of revenue are raised, then money must be found from somewhere not previously thought to be necessary, such as Social Security or Medicare. The money for these two programs may come from people who were not even using the gas tax, to begin with.

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