The price we pay at the pump is truly a bipartisan dilemma — a cost that affects each of us in several ways.
There’s the immediate pinch in our pockets when we buy fuel. According to the Energy Information Administration, the average price per gallon of gasoline for all grades was $4.69 on May 23. That cost is more than double the annual average of 2020, which was $2.25 per gallon.
But the effects of higher fuel prices don’t stop when we pull out of the gas station. Just about every sector of the economy, from air travel to groceries, is affected by fuel costs. And when prices go up, consumers take the hit.
With inflation at a record high, it’s time for the Indiana General Assembly and Gov. Eric Holcomb to provide some relief to Hoosiers by suspending the state’s gas tax.
The state’s tax collections have generated a large surplus, and to their credit, lawmakers have already acted to share the wealth. Many Indiana taxpayers stand to receive a $125 refund this summer.
Sadly, that amount of money won’t go far in today’s economy. Depending on the size of your vehicle, that refund might cover little more than a single tank of gas.
But with a temporary suspension of the state’s 32-cent-per-gallon gasoline license tax, Hoosiers could enjoy some real relief. While the tax is ultimately needed for road projects, a three-month pause of the levy would certainly be feasible.
State Democrats called for Holcomb to suspend the gas tax beginning in March, but Indiana law doesn’t allow him to do so without declaring an emergency. The path to suspending the gas tax runs through the legislature, and lawmakers should convene in special session to address the issue.
While Holcomb and Republican lawmakers have hinted at other means to help Hoosiers, suspending the gas tax would be one of the fastest ways to provide relief. And relief is needed.
Expanded SNAP benefits ended in May. The cost of living has rapidly increased with no end in sight. Though unemployment rates are low, wages are struggling to keep up with inflation, and that especially takes a toll on lower income families.
Indiana wouldn’t be the first state to suspend its gas tax. Over the past few months, Georgia, Connecticut, New York and Maryland have temporarily halted their gas taxes.
Indiana lawmakers in recent months have given much attention to divisive topics, but there’s nothing controversial about lowering gas prices. The temporary relief would likely lead to more spending, which would allow the state to recoup some of its losses in fuel revenue through the sales tax.
This is an area where lawmakers from both sides of the aisle can come together to help Hoosiers.
