Where do things stand with a possible gas tax increase in 2022?
Thanksgiving week kicks off the holiday travel season, providing a great opportunity to look at rising gas prices and the annual effort in the Kentucky General Assembly to increase gas taxes on Kentuckians:
“Gas prices are up from last year as families prepare to hit the road to see loved ones. A gallon of regular will cost you, on average, $3.18 in Louisville. That figure jumps to $3.83 if you're going for premium and $3.38 if your ride requires diesel. Those numbers are all up from this time last year, when you could fill up on regular for $2.03 a gallon.” Courier Journal 11/18/21
What made the much-heralded bipartisan infrastructure bill passed by Congress bipartisan? One key element was opposition by leadership in both parties to raising the federal gas tax.
Kentucky’s senior Senator Mitch McConnell ruled out higher taxes early on in the process of crafting the federal infrastructure package. “I don’t think there’s going to be any enthusiasm on our side for a tax increase,” the Kentucky Republican said.
In contrast, there’s been considerable enthusiasm over the past five years for higher gas taxes by Republicans in the state House of Representatives.
Even Joe Biden opposed raising gas taxes on middle class Americans. Ron Wyden, the liberal Senator from Oregon, said a gas tax increase would be “another hit on working people.” Where does Gov. Andy Beshear stand on the issue leading into the 2022 General Assembly?
Rising fuel prices, inflation and congressional bipartisan opposition to higher gas taxes hasn’t deterred the Kentucky Chamber of Commerce from sticking to their tax-and-spend principles. The Kentucky Chamber has failed to acknowledge the General Assembly made a significant investment in infrastructure last session without raising gas taxes on Kentuckians.
Polling shows the American people’s confidence in the economy is dropping as inflation rises. According to the Associated Press, “The deterioration in Americans’ economic sentiments comes as the cost of goods is rising nationwide, particularly gas prices, and bottlenecks in the global supply chain have made purchasing everything from furniture to automobiles more difficult.”
It’s a tough environment for the pro-gas tax forces going into 2022. Still, taxpayers should expect certain legislators deeply concerned with Kentucky’s road contractor’s rising costs to keep pushing for higher taxes - and ultimately higher gas prices - on their constituents.
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Source: Associated Press 11/2/21