Urges President and Congress to suspend federal gas tax.
Impact
The resolution points out the adverse effects of high gas prices on low-income households and emphasizes that many Americans are living in precarious financial situations, exacerbated by the COVID-19 pandemic. With gasoline prices reaching a national average of $4.33 per gallon, the bill argues that the federal gas tax—set at 18.4 cents per gallon—contributes significantly to the high costs consumers face at the pump. Thus, suspending this tax could provide necessary economic relief to residents of New Jersey and nationwide.
Summary
Senate Resolution No. 94, introduced by Senator Shirley K. Turner, urges the President of the United States and Congress to suspend the federal gas tax as a measure to alleviate the financial burden on Americans caused by the rising costs of gasoline. The resolution highlights the significant increase in inflation, as reported by the Bureau of Labor Statistics, indicating a 7.9 percent rise for the year ending February 2022, the highest inflation rate seen in approximately 40 years. This steep inflation has particularly affected energy prices, which have surged by 25.6%, including a 38% rise in gasoline products.
Contention
The resolution also references a coalition of state governors who have called for action to suspend the federal gas tax until the end of the year, a move that aligns with legislation proposed in Congress called the 'Gas Prices Relief Act.' This proposed legislation aims to ensure that the suspension of the gas tax would benefit consumers while maintaining the solvency of the Highway Trust Fund. The resolution reflects both support for this suspension and recognition of the need to address economic challenges stemming from rising energy costs.
Memorializes President and United States Congress to enact legislation that would eliminate preferential federal tax treatment for oil and natural gas companies.