Gas Tax Holiday Sounds Bigger Than It Really Is for Louisiana Drivers
With gas prices climbing again, the idea of a federal gas tax holiday is back in Washington. On paper, it sounds like the kind of plan drivers in Shreveport, Bossier, Haughton, Benton, and across Louisiana would welcome.
Take away the federal gas tax, lower the price at the pump, and give families a break. The problem is that the actual savings for the average driver would probably be much smaller than the political sales pitch makes it sound.
What Is a Gas Tax Holiday?
A gas tax holiday would temporarily suspend the federal tax on gasoline and diesel. Right now, that tax is 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel. That money helps fund the Highway Trust Fund, which supports road, bridge, highway, and transit projects.
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So yes, cutting the tax could lower the posted price at the pump. The bigger question is how much of that cut actually reaches drivers.
The Savings May Not Feel Huge
Axios reported that the national average for gas was around $4.48 per gallon when the debate heated back up. If the full 18.4 cents came off the price, a driver buying 15 gallons would save about $2.76 on a fill-up.
That is not nothing. Nobody in Louisiana is mad about saving almost three dollars. It just is not the kind of relief that changes a household budget when gas has risen by more than a dollar per gallon.
For a driver filling up once a week, the best-case savings might be around $11 a month. That helps, but it probably does not offset higher grocery bills, insurance costs, summer travel expenses, or the larger jump in fuel prices.
The Highway Fund Takes the Bigger Hit
The Bipartisan Policy Center estimated that a five-month gas and diesel tax holiday could cut Highway Trust Fund revenue by about $17 billion and increase the federal deficit by about $12 billion.
That matters because Louisiana drivers already know what rough roads and aging infrastructure look like. A temporary break at the pump could mean less money available for the roads people drive on every day.
This is why the gas tax holiday keeps returning whenever prices rise. It is easy to explain and easy to campaign on. Families see high pump prices and want someone to do something.
The honest answer is that a gas tax holiday might provide a little short-term relief, but it would not solve the bigger problem. For most drivers, it would feel less like a rescue and more like finding a few dollars in the console.