Gas-Tax Holiday Proposed | AccountingWEB

Gas-Tax Holiday Proposed

With gas prices rising to astronomical amounts across the country, the government has taken a good look at what it could do to appease the burden on Mr. and Mrs. Average America. The answer could be found in a gas-tax holiday that lasts mid-April to Dec. 31.

This isn't the same kind of holiday you want to take over the summer--although a measure like this one could very well enable all of us to travel a bit more if gas prices were, indeed, to fall based on less tax charged per gallon.

Currently, the $26 billion gained annually from the tax charged on gas goes towards the federal highway fund. However, Senator Trent Lott, R-MS, believes the government can allot some of the budget surplus to the highway fund cover the potential shortfall caused by reapportioning the tax.

The Senate will have to vote on this measure. The actual tax on a typical gallon of gas runs 4.3 cents. House Speaker Dennis Hastert, R-IL, said he believes the House of Representatives also would support the idea.

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