For months, lawmakers from both parties have proposed a temporary cut to the state’s gas tax. But so far, no action has been taken.
It’s an idea that sounds good on paper a gas tax holiday to provide some relief for Pennsylvania drivers at the pump.
But hangs up over how to pay for it, and its actual effectiveness, have put plans proposed by both parties in neutral, but an answer could come soon.
As one holiday ends. Drivers are hoping to get another holiday that will ease the pain at the pump. But for months we’ve been hearing about proposals to temporarily ease the State Gas Tax.
“We could achieve a 50% cut which would give relief immediately.”
And so far to no avail. Senate and House proposals from Republicans and Democrats with different ranges of savings on the 57.6 cent per gallon tax and timeframes for the holiday. All have failed to get out of committee.
The concern being the impacts on transportation and state police funding, which rely on the tax, and the savings not making a big enough difference to overcome that
“People don’t realize that the tax is on the wholesale so there is no guarantee that will be reflected at the pump.”
It’s the same arguments that have led to a lukewarm reaction to President Biden’s call to suspend the Federal Gas Tax.
“The American people, they need relief now.”
“We have no evidence that the oil companies will pass that on to the consumer.”
But the plan hasn’t run out of gas yet in Pennsylvania. Gov. Tom Wolf’s budget secretary says the gas tax holiday has been the subject of negotiations over the now overdue state budget as lawmakers and the Governor kick around exactly what to do with American Rescue Plan money.
Though concerns also linger about if a life preserver now would make the situation worse down the road.
“There’s also cons to this and that is that it could exacerbate the imbalance between supply and demand.”
There is some good news for drivers, the pain has been easing in recent weeks as Pennsylvania’s gas prices are down about 20 cents per gallon compared to its peak 3 weeks ago though still that’s about $1.60 higher than this time last year.