The federal gas tax is 18.4 cents per gallon and goes into a trust fund to pay for highway projects and public transportation. Two Democratic Senators have proposed a gas tax holiday, in response to the rapid rise of gas prices over the last year.
Setting aside the idea that it will add more money to the national debt, the idea of reducing the gas tax to help working families and truckers is a very good one. The only question is why it is only temporary? Well, not coincidentally, the two senators who are proposing the tax holiday are up for re-election this year so that answers most of the question. However, the impact of energy price inflation has gone a long way toward wiping out any wage increases and so gas tax relief is a welcome step.