New Mexico requests elimination of federal gas tax until the end of the year

NEW MEXICO – With the intention of reducing the price paid by the citizens of New Mexico for gasoline, Governor Michelle Luján Grisham, together with five of her Democratic counterparts, asked Congress to suspend the federal tax on hydrocarbons until the end of the year.

In a letter sent to Congress last March 8, it is indicated that while seeking to relieve Americans from the financial stress caused by the increase in gasoline prices in the midst of the international crisis and the increase in inflation, it was necessary to suspend the federal tax on said hydrocarbon until the end of 2022.

The letter was signed by Governors Gretchen Whitmer of Michigan, Jared Polis of Colorado, Tom Wolf of Pennsylvania, Tony Evers of Wisconsin, Tim Walz of Minnesota and Michelle Luján Grisham of New Mexico.

According to the American Automobile Association (AAA), the national average price of gasoline in the United States is $4.173 per gallon, an increase of more than $1 over 2021.

The Gasoline Price Relief Act, as introduced in the House and Senate – H.R. 6787 and S. 3609, respectively – would alleviate the consumer cost of rising hydrocarbon prices while protecting the federal government’s ability to make infrastructure investments.

In addition, the legislation would also ensure the solvency of the Highway Trust Fund. The bill would authorize the U.S. Treasury Department to transfer general fund dollars to replace temporarily lost revenue from a stalled federal gasoline tax.

Also, the Infrastructure Investment and Jobs Act (IIJA) dedicated an additional $118 billion to the Highway Trust Fund, and the Trust Fund’s ability to fund the construction and maintenance of roads, bridges and highways across the country would not be diminished by the legislation, the letter explained.

Governor Lujan Grisham urged Congressional leaders to take swift action in support of the Gasoline Price Relief Act in an attempt to save New Mexicans money.

“At a time when people are directly affected by rising prices for everyday goods, a federal gas tax exemption is a tool to reduce costs for Americans, and we urge you to give full consideration to this bill,” the governors wrote to congressional leaders.

Source: MEXICONOW Staff