Farmingdale – Utility and Transportation Contractors Association (UTCA) Executive Director David Rible issued the following statement today regarding reports that President Biden will propose a federal gas tax holiday:
“When he was running for president, Barack Obama referred to a gas tax holiday as an election year ‘gimmick’ and he was 100% correct. Any gas tax holiday will merely siphon away badly needed infrastructure dollars. Ultimately, it will create worse financial issues for working people. This is bad policy disguised as relief and should be rejected.
“We know that gas taxes have little to do with increasing costs. The American Road and Transportation Builders Association (ARTBA) has noted that gas prices are set largely due to refining and distribution of oil. ARTBA also ‘found that on average, one-third of an increase—or decrease—in state gasoline tax rates is passed through to consumers in the retail price on the day the change takes effect, with no significant impact after that time.’
“The money lost through a gas tax holiday will eventually have to be made up somewhere if we actually want to improve infrastructure in our country. Simply put, this is a bad idea.
“We call on our federal representatives in Washington to reject this gimmick.”
UTCA of New Jersey is a non-profit trade association headquartered in Wall, New Jersey. UTCA represents approximately 1,000 member firms in the public and private sectors, active in all phases of heavy, highway, utility, and marine construction, as well as site work including remediation of brownfields and contaminated sites. For more information, log on to http://www.utcanj.org and follow on Twitter @UTCANJ.