Texas House Democrats proposed a “Gas Tax Holiday” today to provide relief for Texas drivers struggling with skyrocketing gasoline prices.
"We need gas to get to work and to get to school. Record breaking gas prices are causing ordinary Texans to lose a lot more of their paychecks. That’s money needed for food, housing, clothes and other everyday necessities," said Representative Trey Martinez Fischer.
The State of Texas collects 20 cents per gallon of gasoline and diesel fuel. Last year, the state collected $2.26 billion in gas taxes and $673 million in diesel taxes.
"Every time a Texan fills up his or her 20-gallon tank, he or she is going to save 4 dollars, that's almost two free gallons of gas every time Texans fill up. It’s the least we can do," said Representative Trey Martinez Fischer.
The gas tax is the most regressive tax, and actually hurts Texas families more than the sales tax, according to the Suits Index. The Suits Index is often used in tax policy analysis to measure the degree of progressivity of a tax.
The cost of the "Gas Tax Holiday" can be paid for by increased federal funding from the transportation bill past last August by the Federal Government. The Federal Highway Administration projects the average annual increase of federal transportation funds to Texas at $788.1 million dollars.
"The gas tax is one of the most regressive taxes we have. No matter how much money you make, we all have to drive. We need to provide Texans with tax relief at the gas pump," said Jim Dunnam, House Democratic Leader. "We are calling on Governor Perry to add the 'Gas Tax Holiday' to the agenda for this special session."