Haley Campaign Press Release - Haley Previews Economic Speech with Call to End the Federal Gas Tax

WEST DES MOINES, IA — Today on Newsmax's America Right Now, presidential candidate Nikki Haley previewed her upcoming economic speech with a call to end the federal gas tax. Haley will deliver a policy speech on Friday, September 22, 2023 in New Hampshire to lay out her plan to combat the economic mess caused by Bidenomics.

"Biden can say whatever he wants about Bidenomics. We feel it when we go into the grocery store. We feel it when we fill up our tank with gas. We feel it with the high cost of rent and the fact that interest rates have gone up and you can't afford a home. We know inflation is real, but it's not just what I say. It's what the Census Bureau said. The Census Bureau came out and said that Americans are poorer now than they were before Bidenomics. That's why I'm coming out with an economic plan next week. And one of the items in that plan is the fact that we are going to make sure that we eliminate all of the federal gas tax in this country. We're going to put that money back into the pockets of the taxpayers. We're going to try and reduce inflation by making sure we're not energy independent, but we're energy dominant.

"We're going to stop the spending, and we're going to come out with another list of plans on how we're going to move all of the functions from the federal government down to the states so that we can reduce the size of the federal government and empower the people in the states. We're going to get our budget back on track—that's why we need an accountant in the White House."

From rising gas prices to surging credit debt to job-killing regulations, America's middle class is struggling. Ending the federal gas tax is a modest step to help soften the blow from Biden's inflation and disastrous energy policies that are driving up the cost of gas. Much more is needed, and Haley will outline those ideas in the coming week.

Nikki Haley's plan to end the federal gas tax

Why should we end the gas tax?

• Cheaper for hard-working Americans: It will soften the blow from Biden's inflation and war on energy.
• Fairer: People who use bike trails and subway systems don't pay a gas tax but benefit from the Highway Trust Fund. Electric vehicles cause greater wear and tear on roads because they are heavier, but their drivers pay zero gas tax.

Impact of ending the gas tax on families:

• During Biden's term, the average price of gas soared past $5.00/gallon for the first time in history.
• Today, a gallon of gas is $1.50 more than it was when Biden took office and families are paying almost $20 more each time to fill their tanks.
• The average one-car household is paying an extra $1,000 a year due to rising gas prices.

Budgetary impact of ending the gas tax:

• Eliminating the gas tax would cost approximately $34.3 billion per year – that's 0.7% of the revenues our federal government brings in and 0.54% of its annual spending.

How does the gas tax work?

• The federal gas tax goes into the Highway Trust Fund which sends money to state and local governments and often comes with costly strings attached, like prevailing wage rules and environmental reviews.
• The vast majority (around 75%) of highway money comes from state and local funding.
• One-sixth of the Highway Trust Fund money is spent on non-highway projects, like mass transit in metro areas and other projects (bike lanes, hiking trails, trolleys, etc.).
• The federal gas tax has not brought in enough money to cover the Highway Trust Fund's expenditures since 2008. Since then, Congress has used money from other sources to make up the difference.

How will we pay for roads?

• Federal funding will continue to be a small part of infrastructure spending. Funding for those projects should come from general revenues, forcing them to compete with other spending priorities.