Push to 'dump the gas tax' grows, but is it any closer to reality?
The push to suspend or eliminate the 18.4-cent federal gas tax is gaining momentum due to high gas prices caused by the Iran War. The Alliance for Automotive Innovation, a major carmaker lobby group, has proposed replacing the gas tax with a new vehicle fee based on weight.
Momentum is building to suspend or eliminate the federal gas tax. The Alliance for Automotive Innovation proposed replacing it with a vehicle fee based on weight. The federal gas tax has been in place since 1932 and is used to fund the Highway Trust Fund. The current rate is 18.4 cents per gallon. Suspending or eliminating the tax would require an act of Congress. The national average gas price has risen to $4.09 per gallon, up from $3.10 a month ago.
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