Democrats in Congress have already introduced legislation to enact a federal gas tax holiday through the end of the year, but so far neither the Senate nor the House bills have drawn support from Republicans. The move to drop gas taxes is one that a handful of states—including Maryland, Georgia, Connecticut, New York, and Florida—have already tried at the state level this year. While a federal gas tax holiday would likely result in some savings for drivers, it would also directly impact highway funding through lost tax revenue, critics say. In addition, lower gas prices could result in increased demand for gas, which could further push up prices, the Tax Foundation said in a February post. Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
