RELIEF AT THE PUMP?
Kiplinger's Personal Finance|June 2022
Lawmakers want to cut gas taxes, but analysts question whether it will actually lower prices.
SANDRA BLOCK
RELIEF AT THE PUMP?

IF YOU’VE EVER DRIVEN ACROSS the U.S., you’ve probably noticed that while most gas stations charge the same price for a frozen burrito, the cost of a gallon of gas varies widely.

The price differences primarily reflect state gas taxes, which range from as little as 15 cents to more than 68 cents per gallon (see the box on page 10). And as drivers head out for summer vacations, they are likely to see even greater disparities at the pump when they cross state lines.

In response to record-high gas prices, lawmakers in Connecticut, Florida, Georgia, Maryland and New York have approved gas tax holidays, and bills have been introduced in at least a dozen more states that would temporarily suspend or reduce gas taxes. Meanwhile, Democrats in Congress have introduced legislation that would suspend the federal gas tax of 18.4 cents per gallon through 2022.

While the U.S. isn’t experiencing 1970s-style gas shortages, the spike in gas prices reflects constraints on supplies that have been aggravated by Russia’s war on Ukraine—and drivers will no doubt welcome any relief at the pump. But analysts say the actual savings from gas tax suspensions will likely be minimal, particularly where the federal gas tax is concerned. An analysis by the University of Pennsylvania’s Wharton School estimated that suspending the federal gas tax through December 2022 would save the average driver less than $50.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM KIPLINGER'S PERSONAL FINANCEView all
MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS
Kiplinger's Personal Finance

MAKING A DIFFERENCE IN THE LIVES OF DISABLED VETERANS

He suffered grave injuries in the line of duty. Now he helps other veterans who have disabilities.

time-read
2 mins  |
November 2024
DO YOU NEED UMBRELLA INSURANCE?
Kiplinger's Personal Finance

DO YOU NEED UMBRELLA INSURANCE?

A policy can protect you from financially devastating events.

time-read
2 mins  |
November 2024
Navigating Finances as a Blended Family
Kiplinger's Personal Finance

Navigating Finances as a Blended Family

Money matters can get complicated when two families unite. Planning is key.

time-read
4 mins  |
November 2024
BREAKING UP WITH YOUR BROKER
Kiplinger's Personal Finance

BREAKING UP WITH YOUR BROKER

Be aware of these challenges when you move your money to a new home.

time-read
5 mins  |
November 2024
CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU
Kiplinger's Personal Finance

CHOOSE A MEDICARE PLAN THAT'S RIGHT FOR YOU

Consider your health care needs over the long term as you weigh costs and coverage.

time-read
9 mins  |
November 2024
Keep Faith in These Stocks
Kiplinger's Personal Finance

Keep Faith in These Stocks

IN 1997, I coined the phrase “faith-based investing.” It has nothing to do with religion or with picking stocks at random.

time-read
5 mins  |
November 2024
OUR ESG PICKS ARE THRIVING
Kiplinger's Personal Finance

OUR ESG PICKS ARE THRIVING

Despite an ongoing backlash, our favorite stocks and funds focused on environmental, social and corporate governance issues had a good year overall.

time-read
9 mins  |
November 2024
MONEY MANNERS FOR THE MODERN AGE
Kiplinger's Personal Finance

MONEY MANNERS FOR THE MODERN AGE

The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.

time-read
8 mins  |
November 2024
ELECTION 2024: POLITICS AND YOUR PORTFOLIO
Kiplinger's Personal Finance

ELECTION 2024: POLITICS AND YOUR PORTFOLIO

Who wins the White House matters—but only at the margins when it comes to your investments.

time-read
2 mins  |
November 2024
YOUR GUIDE TO OPEN ENROLLMENT
Kiplinger's Personal Finance

YOUR GUIDE TO OPEN ENROLLMENT

With health care costs on the rise, it’s critical to select a plan that fits your needs at the right price.

time-read
7 mins  |
November 2024