NewsLocal News

Actions

Kansas City economist weighs in on President Joe Biden's push to pass gas tax holiday

Missouri panel recommends 10-cent gas tax increase
Posted at 6:10 PM, Jun 22, 2022
and last updated 2022-06-22 19:10:26-04

KANSAS CITY, MO — On Wednesday, President Joe Biden called on Congress to pass a gas tax holiday for the next three months.

This comes as more drivers are expected to hit the road this summer.

The move would save drivers just over 18 cents per gallon on gasoline, and 24 cents per gallon on diesel.

Money from the federal tax gas goes toward the highway trust fund.

On Wednesday, Biden explained how the tax can be suspended without impacting that fund.

“The tax revenues up this year and our deficit down over 1.6 trillion dollars this year alone, we'll still be able to fix our highways and bring down prices of gas we can do both at the same time,” Biden said.

The president is also calling on states to suspend their gas taxes or find other ways to help drivers save.

Missouri drivers pay a 19-and-a-half cent gas tax, while Kansas drivers pay a 24-cent gas tax.

Gas prices at record highs, are forcing many to hold on to every dollar at the pump.

“It hurts, it really does,” Charles Harris, who is frustrated with high gas prices, said.

Chris Kuehl, an economist with Armada Corportate Intelligence, says gas tax holiday won't totally help fill the tank.  

“It's a gesture and it's not going to have a huge impact," Kuehl said.

Kuehl also said the process to pass this gas tax holiday is not a quick fill- up.

"Because this has to be involved within the oil companies themselves adding that tax to the price of the gallon of gas," he said. "So they are going to have to agree not to collect that money in order for this to show up at the pump."

Kuehl said the car that a person drives could make a difference.

“If you're looking at a car that is a fuel saver to begin with, a Prius or something like that, [you might not notice a difference], because you don't put a lot of gas in the car to begin with," he said. "A larger SUV or a truck, you could be talking hundreds of dollars over a two or three month period."

Many at the pumps across Kansas City are looking for answers may have to continue trucking with current prices.

Keuhl weighed in on what he thinks could help lower prices.

“Finding more oil production around the world could play a role, trying to find a way to bring a great end to the Urkaine War, so the sanctions on Russian oil be released, those will make a bigger difference," he said.