Suspending the federal fuel tax might provide some temporary
relief at the pump(if oil companies don’t catch wind and adjust their pricing to take advantage); however, it could be detrimental to the nation’s infrastructure rebuilding efforts.
Suspending fuel taxes is only a temporary fix to high gas prices
The Hill’s Maya Macguineas, gas taxes are a stopgap measure that could harm more than help by increasing inflation in the long run and depriving the nation of key infrastructure funding.
As Macguineas writes, suspending federal gas taxes do next to nothing in addressing the ever-increasing cost of living that’s putting the hurt on many Americans’ bank accounts. She notes that while inflation grew 6.7% in 2021, it would’ve grown 6.5% if the 18-cent-per-gallon federal gas tax was suspended.
That number also assumes that oil producers and gas stations wouldn’t absorb the savings intended for consumers at the pump. If price-gouging habits throughout the past few decades are any indicator, consumers would likely not see any significant savings before suppliers jacked up the pre-tax cost of their fuel.
Without anything to replace the revenue from those taxes (nearly $20 billion through the end of the year), infrastructure construction and maintenance would be the real losers here.
Find insurance savings (100% Free)
Let Jerry find your price in only 45 seconds
No spam · No long forms · No fees
Is U.S. infrastrucure in bad shape?
“Infrastructure” includes roads, highways,
bridges, railways, water supplies, dams, drinking water, wastewater treatment and much more.
Of the country’s 617,000 bridges, 42% are 50 years old or older and 46,154 (or 7.5%) are considered “structurally deficient, meaning they’re in dire need of repair or rebuilding.
What does this mean for the average motorist? According to the
Council on Foreign Relations, infrastructure failures like bridge collapses, poorly maintained roads and waterways can cost the U.S. economy billions in lost productivity.
Traffic congestion alone can cost the economy $120 billion per year. While the U.S. population has doubled since the ‘60s, the
country’s major infrastructure systemswere not designed to handle the current overwhelming capacity and are at the end of their lifespan.
ACSE, failing to invest in infrastructure—the biggest problem being surface transportation like roads and rails—could cost the nation $10 trillion in lost gross domestic product by 2039 if the government doesn’t address it.
The U.S. is behind other developed nations in infrastructure quality, ranking 13th in the world in 2019 per the
World Economic Forum’s Global Competitiveness Report. Compared to other G20 nations, the U.S. ranks 18th in terms of planned infrastructure spending by 2040.
Save money with Jerry
High gas prices may not be going away anytime soon, but you can still save on your car insurance with Jerry.
Jerrycustomers save an average of $887 a year to insure their vehicle. If you’re deterred by the work of gathering quotes and you’d rather leave it to someone else, the Jerry app collects quotes from over 50 top insurance providers, like Nationwide, Allstate, Safeco, Progressive, and Travelers, in seconds. Jerry even helps cancel your old policy once you’ve made your pick.
Once you download Jerry, just answer a handful of questions that will take you roughly 45 seconds to complete and you’ll immediately get car insurance quotes for coverage similar to your current plan.