High gasoline prices worsened by a faraway war are hurting drivers’ wallets. So it’s understandable that, especially in an election year, politicians want to ease the pain at the pump. But cutting or suspending the gas tax — either the state or federal version — is a foolish short-term stunt that robs investment in our transportation infrastructure, from roads, highways and bridges to subways, buses and commuter rail.
New York’s fuel tax is not tied to the price but volume, so it’s the same 46.19 cents per gallon regardless of whether Russia is invading Ukraine or the Saudis are boosting supply or Venezuela or Iran are up to no good. It’s the same 46.19 cents per gallon, of which 37% goes to the Mass Transportation Trust Fund and 63% into the Highway and Bridge Trust Fund. (Separately, the feds charge 18.4 cents per gallon.)
Albany is not alone in eyeing the gas tax. Last Friday, Maryland began its own 30-day gas tax holiday on its 36.1 cents per gallon levy. On April 17 it comes back, or that’s the plan for now. And the Maryland Transportation Trust Fund goes wanting for a month, even though it’s meant to pay for their tremendously over-budget Purple Line transit route in the D.C. suburbs. Friday, Georgia also lifted its 29.1 cents per gallon tax until May 31. In the Peach State all gas taxes are used for road projects. Transit gets nothing.
As short-sighted pols bang the drum, skeptical New York Gov. Kathy Hochul has correctly said there’s no guarantee that suspending the tax would help motorists — the cut might not actually slash prices at the pump by much. She and the Legislature must resist the lure of a wasteful non-fix meant to buy some headlines at the expense of sound fiscal and environmental policy. It’s far better to direct focused tax relief to people at the lower end of the income scale. And why stop at gasoline? The prices of many items are rising, why not slash sales taxes more broadly?
