Dems Offer 60-Day Gas Tax Break
By: Administrative Account | Source: CNSNews.com
April 26, 2006 12:59AM EST

By Melanie Hunter
CNSNews.com Senior Editor
April 25, 2006

(CNSNews.com) - On the same day that President Bush announced he would suspend deposits to the Strategic Petroleum Reserve, Democrats unveiled a plan of their own Tuesday designed to give consumers a break from high gas prices by offering drivers a 60-day holiday from the federal gas tax.

The Menendez Federal Gas Tax Holiday Amendment, an amendment to the Supplemental Appropriations Bill being considered by the Senate, will remove the 18.4 cents per gallon federal tax on gasoline and the 24.4 cents per gallon federal tax on diesel fuel for 60 days.

"Last year, the big oil companies hiked gas prices and blamed an act of God, but it's crystal clear that the current spike in gas prices is at least partly due to an act of greed," said Sen. Bob Menendez (D-N.J.) in a statement.

"We must provide American families immediate relief by suspending the federal gas tax for 60 days and making up for the lost revenue by getting rid of some unnecessary tax giveaways to oil and gas companies," Menendez said.

Menendez's plan will be paid for by repealing over $6 million in tax breaks to the oil industry. It is estimated to provide $100 million a day in relief directly to consumers.

In addition, the Democrats promise that the Highway Trust Fund will not be affected by their gas relief plan.

Money collected by reducing the oil industry's tax breaks will be transferred to the Highway Trust Fund in an amount equal to the revenues lost through the federal tax holiday, they said. The trust fund will still collect money needed to continue all currently planned and funded projects.

"For years, Democrats have been fighting to get tough on Big Oil and protect Americans from being exploited when they fuel their cars," said Senate Democratic Leader Harry Reid (D-Nev.). "Unfortunately, for years Republicans have been more interested in protecting oil companies' profits than the American people's pockets.

"Now that gas prices are skyrocketing and Americans are struggling just to fill their gas tanks, Congress must act to ease the burden. Passing a federal gas tax holiday and repealing the tax giveaways in the Bush energy bill is a good start," said Reid.

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