On April 5, 2023, Senate Republicans introduced new legislation aimed at temporarily suspending the federal gasoline tax to ease the financial burden on American consumers as gasoline prices continue to rise. The bill, known as the “Gasoline Tax Relief Act,” seeks to reduce the cost of fuel for families and businesses by suspending the federal tax of 18.4 cents per gallon for a period of six months.
Senator Chuck Grassley (R-IA), the lead sponsor of the bill, was joined by fellow Republican senators including Senator John Barrasso (R-WY) and Senator Joni Ernst (R-IA), who argue that the federal government’s gas tax is contributing to the already high cost of energy. With inflation at historic highs and gasoline prices exceeding $4 per gallon in many parts of the country, the GOP believes that suspending the tax will provide immediate relief to working families and reduce the economic strain.
“The Biden administration’s policies are driving up energy costs and hurting American families,” Grassley said during a press conference announcing the legislation. “By suspending the federal gas tax, we can provide some immediate relief to consumers, encourage economic growth, and help lower the cost of living for all Americans.”
The proposal has garnered support from various business and industry groups, including the National Federation of Independent Business (NFIB) and the American Trucking Associations, both of which have expressed concern over how high fuel costs are affecting small businesses and supply chains.
“The high cost of fuel is making it harder for small businesses to stay afloat,” said Kevin Kuhlman, vice president of federal government relations for the NFIB. “Suspending the federal gas tax would provide some much-needed breathing room for businesses that rely on transportation and energy to operate.”
However, the bill faces strong opposition from Senate Democrats, who argue that suspending the gas tax will lead to a significant loss of revenue for critical infrastructure projects, such as road maintenance and repairs. Transportation Secretary Pete Buttigieg and other Democratic leaders have also pointed out that the measure could exacerbate the deficit and delay investments in long-term energy solutions.
While President Biden has expressed support for certain measures to lower fuel prices, he has not yet endorsed suspending the federal gasoline tax, which remains a contentious issue between the parties. The outcome of this bill will likely play a significant role in the ongoing political debate surrounding energy policy, inflation, and government spending. With midterm elections on the horizon, the GOP is framing the issue as a crucial step toward reducing costs for Americans and restoring energy independence.
