One of the main topics being tossed around in the lingering presidential debates is the idea of a gas tax holiday. If you’re like me, you’ve never even heard of this phrase before this election year. Of course, there are probably some informed people that know exactly what it is. But for those who are just learning about it (like me), here are some facts to help you understand what they’re talking about.
• Currently, you’re paying between 18 and 19 extra cents per gallon (24 to 25 cents for diesel) at the pump than what the fuel actually costs. This extra cost is the gas tax. It doesn’t seem like much, but that’s about four dollars at each fill-up if you have a 20-gallon tank.
• The gas tax holiday refers to the idea of putting a moratorium on this tax between Memorial Day and Labor Day. The idea is that this will be a great thing for the American economy because it will encourage families to take their normal vacations during this time.
• During this time period, analysts think the federal government could lose about $10 billion in revenue.
This is a tricky issue and there are people arguing both sides. For instance, it this would only save drivers a few dollars with each fill-up. Is that really enough to make people change their plans for the summer? Besides, won’t the oil companies just raise the prices to make up for that 20 cents they’re losing on each gallon? And then do you think they’re going to drop the prices once the gas tax holiday is over?
If the gas tax moratorium does occur, you can expect more people getting a great deal on a truck or SUV at your local GMC truck dealer. With the strides the automaker has made in fuel efficiency and hybrid SUV models, gas prices aren’t as big of a problem as they used to be.
