Kuhl Introduces Gas Price Relief Bill

KUHL INTRODUCES GAS PRICE RELIEF BILL

Bill calls for relief from federal gas taxes once price climbs above $3.00/gallon

WASHINGTON, D.C., Sep 22 - U.S. Representative John R. "Randy" Kuhl, Jr. (R-Hammondsport) today introduced legislation, H.R. 3842, to cut the federal gasoline tax when the national average price of gas reaches $3.00 per gallon. The bill calls for a 10 cents per gallon cut in the gas tax once it reaches that level.

"In our predominately rural area of New York, people are absolutely dependent on their cars and have very few public transportation options," said Rep. Kuhl, a member of the House Transportation Committee. "Our efforts here in Washington to produce another energy bill, coupled with the efforts at the state level to cap the state gas tax when the price gets too high, will result in savings for consumers when times get tough. As we face another potential supply problem as Hurricane Rita moves across the Gulf, the time for action is now."

The average gas price would first be determined based on scientific polls done by experts at the Energy Information Administration (EIA). The EIA is an independent branch of the U.S. Department of Energy that does objective energy related studies on behalf of Congress and the Administration.

Once the national average has reached $3.00 per gallon (according to the EIA), the current federal gas tax or excise tax of 18.4 cents per gallon will be temporarily decreased by 10 cents. Once the gas prices have gone back down below $2.50, the previous tax of 18.4 cents per gallon would be reinstated. The reduction, coupled with a reduction in state gas taxes, would allow citizens to buy more affordable gas and diesel fuel. The reduction in the gas tax will not hurt money that is directed to the Highway Trust Fund for valuable highway infrastructure as the lower gas prices will send more people to the pumps and generate similar revenue for the Trust Fund.

http://kuhl.house.gov/News/DocumentSingle.aspx?DocumentID=34709