States Consider Cutting the Gas Tax to Combat High Prices

Washington DC May 12, 2006; The AIADA newsletter reported that States across the country are floating around the idea to trim or suspend state gas taxes, reports The Detroit News. Governors and State Legislatures in Maryland, South Carolina, Connecticut, Georgia, New York, and Nevada are currently pushing measures on the tax, while Texas, Minnesota, Delaware, and Idaho are considering the idea.

"We think it would have real bottom-line benefit to a lot of working families who are struggling with the price of gas," South Carolina Gov. Mark Sanford said on Wednesday, when he proposed suspending the state's 16.8 cent-per-gallon tax for three months. According to the paper, states add 27.5 cents to each gallon of gas on average from a combination of excise taxes, business taxes, and local sales taxes. The federal government adds 18.4 cents to each gallon.