Indiana Democrats are calling for a pause on state gas taxes, which are at a record high. Can it be done, and should it? ⛽
Gas prices and quality differ from city to city and state to state. Here's everything you need to know about how gasoline in the U.S. works.Not only are gas prices at historic levels, but in Indiana, so are gas taxes.
Gas tax holidays are not necessarily a straightforward policy win, experts say, even as they present lawmakers with a very visible action they can show constituents. In times of economic stress, tax holidays have been proposed by both sides of the aisle in various states and at the federal level — including once in Indiana, two decades ago.
. This tax contributes to the federal Highway Trust Fund, the source of most federal government spending for highways and mass transit.Can the state taxes be paused? "When we have this much money sitting in the bank, and it's not ours to begin with, we should give some back in times like these," Rep. Mitch Gore, D-Indianapolis, recently told IndyStar. Indiana lawmakers pass $1.1 billion income tax cut bill. What you would save.
A Journal of Public Economics study of Indiana's 2000 gas tax holiday found that consumers only saw about 70% of that reduction pass through to their pocketbooks. This means that, theoretically, a 56-cent tax cut might only result in about a 40-cent overall cost cut at the pump.