x
Breaking News
More () »

What a 'Gas Tax Holiday' means for your wallet

The President is asking Congress to think about imposing a 'Gas Tax Holiday' across the nation

NEW ORLEANS — We're hearing a lot about a 'Gas Tax Holiday.' President Joe Biden says a temporary removal of the gas tax, would help ease the high cost of gasoline. However, there's disagreement if that actually is the case.

Removing taxes sounds like a great thing, and the president says a 'Gas Tax Holiday' would bring relief to Americans. However, there is opposition from both parties and consumers, who say it may not do a whole lot of good.

The question is how much would you save? The federal gas tax, for unleaded, is about .18 cents per gallon. With the average cost of gas in Louisiana at $4.51, someone with a 16-gallon tank will spend about $72.16 to fill up. Remove the federal gas tax, you're then paying about $69, saving you about $2.88

Sure every cent counts right? But that's still not a whole lot of savings. And there's worry if the tax is removed, even for three months, it could be devastating for the nation's infrastructure.

You see, most of the money from the federal gas tax goes to help build, fix and maintain the nation's roadways. It also helps with bridges, tunnels, and alleviating congestion. Without that money, there's question on how those projects will be paid for.

There's also arguments a Gas Tax Holiday won't fix the issue of supply and demand for oil, which is one of the reasons for rising gas prices. And there's fear, retailers and oil companies would keep pump prices the same, and take the profit.

A 'Gas Tax Holiday,' which needs approval from Congress, may or may not happen. AAA says there are things you can do today to make sure you're getting the biggest bang for your buck. That includes:

- Making sure the gas cap is closed properly, so fuel doesn't vaporize

- Watch the air conditioner, because when set on max it can lower your miles per gallon up to 25%

- Check your tires, because if they're filled correctly with air, it can improve gas mileage more than 3% per tire.

Biden is also encouraging states, like Louisiana, to temporarily remove its gas tax. If that happens, the price of gas per gallon would drop another .20 cents.

RELATED: Yes, these five U.S. states have passed their own gas tax ‘holidays’ in 2022

RELATED: Biden calls for 3-month suspension of gas and diesel taxes

Paid Advertisement