Why are Republicans in control of the Indiana Legislature so opposed to suspending the state’s gasoline tax?
As of Friday, several states have already suspended their gas tax for a period of time; at least 20 others are considering a suspension.
Currently the state’s gas tax rate is 32 cents per gallon; added to that is a federal tax of 18.4 cents per gallon and the state’s 7% sales tax, which adds another 24.1 cents to the price.
What that means for the average motorist in the Hoosier State is, of the $4.59 price for regular gas at the pump, 74 cents of the cost are taxes.
For every 10 gallons of gas purchased in Indiana, motorists are spending $7.40 in taxes. The taxes on diesel fuel are higher.
Former Gov. Frank O’Bannon suspended the gas tax in 2000 when the price of gasoline surpassed $2 per gallon.
The suspension of the gas tax could be done by Gov. Eric Holcomb by an emergency order, or the Legislature, which convenes next week, could pass legislation to suspend the tax for a period of time.
Lawmakers who will travel from the four corners of the state next week to Indianapolis are reimbursed for their fuel expenses by the taxpayers.
Maybe since the cost is not coming from their own pocket, there is no rush to suspend the gas tax.
Indiana currently has a surplus of $5 billion in its coffers and lawmakers did vote to provide every resident with a $125 tax refund.
Depending on the vehicle being driven and the number of miles traveled, that $125 would purchase about 27 gallons of gasoline.
One-third of the gas tax is deposited directly into the state’s general fund, adding to the billion-dollar surplus.
The remainder goes to the state’s highway fund and is distributed to local units of government through the Local Road & Bridge Fund.
Gov. Holcomb and the Republican majorities in the Legislature need to be thinking of the impact increased fuel costs are having on average Hoosiers.
With the state’s minimum wage at $7.25 per hour, a worker making that wage, if working 40 hours per week, will earn $290 before taxes.
Should the worker have a family with infants or young children at home, they are dealing with increased food costs, the price of diapers and baby formula — if they can find it.
They should also consider senior citizens living on fixed incomes.
Will suspending the gas tax be an end-all to the problems? Not really, but it would provide some financial relief to those Hoosiers already struggling financially.
Republicans maintain they can’t suspend the gasoline tax during the session next week.
That’s a weak argument. If lawmakers wanted to provide some relief at the pump, a way to do it would be found.
Maybe Hoosiers could protest the lack of action by lawmakers by demonstrating at the Statehouse.
The problem is, they can’t afford to make the trip.
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