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Proposals for gas tax 'holiday' gets pushback at state, national level

Prices have skyrocketed for Americans at the pump, but some lawmakers don't believe suspending the tax is a viable solution.

SEATTLE — There is no consensus on whether lawmakers should provide a gas tax holiday, or rebate, in Washington State or Washington D.C.

The idea has garnered significant momentum this week, as the price at the pump has skyrocketed to record levels throughout the country as the war rages on in Ukraine, and the US banned oil imports from Russia.

Washington Congresswoman Kim Schrier has been pitching a bill to provide a federal gas tax holiday, and she's not alone. Six Democratic Governors have also signed a letter encouraging the White House to do the same.

In Washington State, an effort led this week by state senator and Republican Simon Sefzik was quickly rebuffed. 

"It's a great way to provide immediate tax relief," Sefzik said.

But the idea wasn't even given any floor debate. 

"It wouldn't work here," said Rep. Jake Fey, (D) of Tacoma. "While I get the point about trying to get people a break, we're way behind on our transportation investments that people are counting on," he told KING 5 in an interview.

It gets complicated given the allocation of the gas tax revenue. The combined state and federal gas tax is 67.8 cents per gallon. The state receives 49 cents per gallon, and uses it for construction and maintenance for roads, bridges, ferries, traffic signaling, and public safety with the Washington State Patrol. Sefzik was suggesting moving money from the general fund to offset any loss of gas tax revenue.

But there are voices who suggest that oil companies are price gouging because of the war. 

On Thursday, Washington Senator Maria Cantwell suggested executives should be called before Congress to explain why the price has spiked so quickly. "The top six oil companies made $90 billion in profits last year," she said, "I believe in getting them in here and getting them to raise their right hand and asking them questions about this issue, which the Energy and Commerce Committee have done before, maybe we should do a joint hearing and do that because I think that we find out a lot of answers about what's going on."

Mariya Frost, who is the director of the Coles Center for Transportation at the Washington Policy Center, also said Thursday she does not believe a gas tax holiday is a solution to the current situation and suggested a sales tax break is a better option. 

"The gas tax is tied to bonds that pay for critical infrastructure maintenance and improvements that are important not just to drivers, but to emergency responders, freight, and transit as well. Instead, the state should consider meaningful relief through a sales tax cut, or reducing unpopular driver fees that are being increased in the revenue package to pay for transit which fewer people are using, and political endeavors like high-speed rail."

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