What does the federal gas tax pay for?
Testing widget old system
CHICAGO (NewsNation) — Every time Americans fill up their tank, they’re paying a federal gas tax on top of the price of oil.
Some members of Congress have opposed the gas tax, especially in the wake of inflation and the Russia-Ukraine crisis.
“We’re having a caucus discussion on it. We haven’t yet taken a caucus position but it’s one of many things we’re looking at in terms of reducing costs,” Senate Majority Leader Chuck Schumer said.
Currently, $0.18 of every gallon that Americans pump goes to federal taxes. $.31, on average, goes to state taxes.
The Committee for a Responsible Federal Budget estimates that suspending the gas tax would cost the federal government $20 billion.
The White House has said “Every tool is on the table to reduce prices.” While President Joe Biden has already released 50 million barrels from the nation’s petroleum stockpile, “All options are on the table looking ahead.”
Federal taxes help fund 84.5% of the nation’s highways, 15% goes to mass transit and .5% goes to leak cleanup and maintenance for the tanks underneath gas stations.
As for state taxes, they are also used to help pay for each state’s road repair and environmental programs. Though some are more expensive than others, every state levies a tax on top of the federal one.
