From the Institute for Policy Innovation (IPI)
Published: 04-02-08
Thousands of the nation’s independent truckers are threatening to go on strike this month (April) to protest high fuel prices.
Truckers are being hard hit by the escalating fuel costs. For one thing diesel fuel costs more than regular gasoline—exceeding $4 a gallon in many parts of the country (remember when diesel fuel cost less than regular gasoline?).
When a long-haul truck holds 250 gallons well that’s a serious cost of doing business for people who don’t usually have deep pockets.
One of the truckers’ demands is removing the federal gas tax.
Hey guys we’re with you there.
Currently consumers pay 18.4 cents in federal tax for every gallon (a little more for diesel) and then states tack on their own taxes. A Tax Foundation study a few years ago estimated that federal state and local gasoline taxes add up to an average of 45.9 cents per gallon.
So if Congress were to eliminate the federal gas tax on diesel fuel it would be both a tax cut and a lifesaver for independent truckers.
And it’s not a far-fetched idea. A few years ago then-Representative Harold Ford Jr. (D-TN) proposed a 30-day suspension of the federal fuel tax which could be extended if needed. Lots of other Democrats warmed to the idea.
But instead of giving truckers—better yet everyone—at least a temporary reprieve from the federal gas tax the National Surface Transportation Policy and Revenue Study Commission recommended last January an increase in the gas tax up to 40 cents a gallon.
The fact is that for all of Congress’ pandering and hand wringing over high gas prices much of the blame falls on . . . Congress.
While crude oil supply isn’t the only factor affecting price it’s certainly one of them. The U.S. is sitting on huge reserves in ANWR (the Alaskan National Wildlife Refuge). And lots of people want to drill in ANWR but Congress has stonewalled that effort. There is oil off the coast of Florida but we aren’t allowed to drill there either.
And Congress has imposed a tariff on imported ethanol which has the net effect of raising your gasoline bill.
None of this makes any sense to a rational person.
Congress has within its power to reduce the cost of fuel by lowering the gasoline tax. If it doesn’t the public has within its power to reduce the time congressmen get to bear that name.
