MONTOGOMERY, Ala. (WHNT) – Governor Kay Ivey has responded critically to President Joe Biden’s call for Congress to support him in pausing the federal gas tax for three months, as prices across the country remain high.
President Biden spoke to the nation Wednesday afternoon asking lawmakers to pause the tax, which charges 18 cents per gallon for gasoline and 24 cents per gallon for diesel.
“Alabamians and Americans alike are hurting, and it’s a real shame President Biden is failing to address the problem,” Ivey said in her statement. “Folks across our state need relief, but I do not believe that relief will come through a fuel tax suspension at the federal or state levels. In fact, as we have continued to look closely at this issue, I believe that this could cause more harm than good in Alabama, ultimately costing taxpayers.”
Alabamians pay a 28-cent gasoline tax and a 29-cent diesel tax, of which the revenue goes toward Rebuild Alabama projects across the state. There were calls by candidates in the May GOP gubernatorial primary to reconsider the tax.
Ivey and state lawmakers have not proposed any legislation to do so, one representative said pausing the tax could lead to a loss of revenue for much-needed infrastructure projects.
“President Biden could not be more hard-headed on the issue of American energy independence, but he campaigned on that, so, it comes as no surprise to me. He is closing pipelines with the stroke of a pen,” Ivey added in her statement. “Here in our neck of the woods, the Gulf of Mexico is currently in a moratorium with no lease sales being held, which impacts both our oil and gas industries and the Alabama consumer. He is pointing his finger at the oil industry and is looking anywhere else but home. There is also no certainty that Americans will feel even temporary relief from this band-aid approach. Let’s be clear: We need a permanent solution.”
Several states across the country have considered suspending or lowering their state gas tax including Tennessee, Georgia and Michigan at some point this year. California has administered a gas rebate card to car owners while the city of Chicago handed out thousands of dollars worth of gas gift cards.