ARTBA Impacts Gas Tax Debate

What’s happening: ARTBA is aggressively pushing back against President Joe Biden’s call for a 90-day suspension of the federal gas tax. Association CEO Dave Bauer released a statement opposing the proposal and gave several press interviews. ARTBA also renewed its earlier social media and advertising campaign that features former President Barack Obama referring to a similar gas tax suspension plan in 2008 as a ‘gimmick.’ The resulting press coverage shows how ARTBA is shaping the debate:

• ‘Even a temporary gas tax holiday‘sets a bad precedent and undermines the funding mechanism in the infrastructure investment law that has been the signature policy achievement of the Biden presidency,’ said Dave Bauer, president and CEO of the American Road & Transportation Builders Association.’ (Associated Press; June 22, ‘How Biden’s proposed gas tax holiday would work.’)
• ‘The [Infrastructure Investment and Jobs Act] also depended on a $118 billion transfer from the Treasury to avoid the need for Congress to come up with a source of new revenues. But Dave Bauer, CEO of the American Road and Transportation Builders Association, noted that‘the single biggest pay-for for the infrastructure bill was the gas tax,’ which contributed hundreds of billions of dollars to the bill. Without the gas tax, Bauer said, it would have been difficult for Congress to pass the bill.‘If you don’t count that foundational contribution from the existing user fees, I mean, how much harder would that have been?’ he said.‘Without that existing revenue foundation, they would have needed $200-250 billion more over the next five years.’ ‘ (Politico, June 22, ‘Who gains from pausing the gas tax? Probably not drivers — or Biden.’)
• ‘Dave Bauer, American Road & Transportation Builders Association president and chief executive officer, said in a statement,‘Senior administration officials know full well the 18.4¢-per-gal federal gasoline tax is not the factor driving increased prices at the pump.’ Bauer said a recent ARTBA analysis of changes—up or down—in gas tax rates in 34 states between 2013 and 2021 showed that only 18% of an increase or decrease was passed through to motorists in the two weeks after a tax rate change occurred. (Engineering News-Record, June 22, ‘Biden’s Proposed Gas-Tax Pause Draws Industry Criticism.’)

Why it matters: The 18.4-cents-per gallon federal gasoline tax is not the factor driving increased prices at the pump. With the rate unchanged in 30 years, it’s the one constant in a volatile energy market. ARTBA’s analysis of pump prices, showing the minimal retail effect of fuel tax changes, has been cited by the media several times this week and in past months as some states have considered similar suspensions. In a June 16 letter to President Biden last week, Rep. Earl Blumenauer (D-Ore.), a senior member of the House Ways & Means Committee, linked to ARTBA’s report and voiced several of the key arguments against a gas tax suspension.

What’s next: Besides resuming its digital and social media advertising campaign, ARTBA is also partnering with our state affiliates to host a series of state congressional delegation briefings about the status of the new infrastructure bill and the flaws of any gas tax ‘holiday.’

Take Action: Contact your members of Congress and urge them to oppose efforts to suspend the federal gas tax. Consider joining us at the National Workshop for State and Local Transportation Advocates July 12-13 in DC for our session on “Gas Tax Suspensions: Pedal to the Metal or Running on Empty?”