ATA, TCA, & more come out against Trump’s suggested fuel tax holiday in wake of diesel spike

The American Trucking Associations, Truckload Carriers Associations, and more have come out against a potential fuel tax holiday proposed by President Trump earlier this week. 

Trump mentioned the potential for a fuel tax holiday on Monday, May 11th. This sort of tax holiday would require action from Congress, but Republican lawmakers have already introduced legislation that would allow for the pause on the 18.4 cent and 24.4 cent tax on gas and diesel, respectively. 

Later that same day, the American Trucking Associations, Truckload Carriers Association, and National Tank Truck Carriers released the following statement outlining their stance against the proposal:

“We understand and appreciate the desire to provide relief to Americans facing higher fuel costs. However, history shows that gas tax holidays deliver negligible benefit to consumers. Because the tax is collected at the wholesale level and not at the retail pump, most savings never reach the consumer. While the average motorist pays about $1.63 per week in federal fuel taxes, a suspension would translate into only about 30 cents in weekly savings.

“Without replacement funds, fuel tax revenues supporting critical investments in highway safety and infrastructure projects would evaporate, hindering the safe and efficient movement of people and goods across the country.

“America’s highways are truckers’ shop floor. While trucks are only four percent of vehicles on the road, the trucking industry covers nearly half of all Highway Trust Fund revenue. We look forward to working with members of Congress on solutions that deliver meaningful relief to consumers while preserving the long-term integrity of our transportation system.”

“Eighteen cents of gas tax relief a gallon doesn’t even come close to the $1.50 gas price increase from this war, and Republicans need to stop pretending that it does,” said Senate Minority Leader Chuck Schumer, on the Senate floor Tuesday, reported CNBC. “Offering Americans literal pennies on the dollar to cope with skyrocketing gas prices just won’t cut it — 18 cents is not $1.50.”

“If you lifted that, does that ultimately get passed on to consumer, to the customer, buyer out there, or does it get sucked up in the supply chain somewhere?” said Senate majority leader John Thune. “I think those are all fair questions to ask, but it’s a conversation that I think we’re willing to have, and I’m certainly willing to hear the president’s arguments.”