We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Logistics industry skeptical of proposed gas tax holiday

Logistics industry skeptical of proposed gas tax holiday

Trade associations, industry groups continue to weigh in on Biden Administration proposal, saying it would do little to help ease inflation concerns.

gasoline-g7588b793f_640.jpg
June 27, 2022
Victoria Kickham
No Comments
Logistics industry trade groups and others are lukewarm on the Biden Administration’s request that Congress suspend the federal gas tax for three months to ease pain at the pump, with some calling it a “gimmick” that would do little to help consumers and would harm recent efforts to improve the nation’s infrastructure.

President Biden asked Congress to suspend the tax–which is 18.4 cents per gallon for gasoline and 24.4 cents a gallon for diesel–last week, but the request was met with skepticism from many, including industry trade groups such as the the American Trucking Associations (ATA) and the International Foodservice Distributors Association (IFDA).

Shippers, carriers, and logistics services providers gathered for this week’s SMC3 Connections conference in San Diego said they are skeptical as well. Paul Bingham, director of transportation consulting for S&P Global Market Intelligence, said the proposal would do little to curb the effects of inflation, for instance, saying the move would be “more for show” than anything else. Bingham delivered a U.S. financial update on the first day of the conference. Other speakers at the event agreed, calling it a “band-aid approach” that would bring little savings to U.S. consumers in exchange for a big hit to the recently passed infrastructure spending bill, which receives much of its funding from the gas tax. The proposal could cost about $10 billion, according to White House estimates.

This week’s comments echoed those of ATA President and CEO Chris Spear, who spoke out on the issue following Biden’s proposal last week, calling it a gimmick and asking the administration to “get serious about lowering energy prices and reducing inflation.”

“After months of touting the passage of the well-funded Infrastructure Investment and Jobs Act–a much-needed investment in our nation’s roads and bridges–the Biden Administration wants to cut that same highway system’s primary source of funding with a suspension of the federal fuel tax,” Spear said in the press statement, adding that Congress and the Biden Administration should consider three alternatives that “will actually make a difference.” Those alternatives are: making America energy independent, renewing trade agreements with the European Union and Asian Pacific nations to export more American oil and natural gas, and balancing the budget, according to ATA.

“… stop wasting hard-earned taxpayer dollars on senseless programs that drive up inflation and runaway deficits,” Spear said. “Energy independence, trade and a balanced budget. Do that, and America wins.”

Officials at IFDA agreed, emphasizing the need to increase energy production in the United States.

“Instead of a gas tax holiday, which will take away from badly needed infrastructure dollars, President Biden should focus on making America energy independent,” IFDA President and CEO Mark S. Allen said in a statement to DC Velocity. “Increasing energy production here at home will have a meaningful impact on energy and gasoline prices and provide lasting relief for all Americans.”

The move would have little effect on shippers, according to Matt Muenster, chief economist at transportation management solutions firm Breakthrough, adding that the larger problem of inflation will continue to dampen consumer spending and overall economic growth.

“Consumer expectations for inflation are an important driver of consumer spending, and a three-month tax holiday will not likely improve those expectations,” he said. “... we can still expect consumer demand for goods to gradually slow with slower economic growth. That leaves the transportation energy and freight markets mostly unchanged for shippers and their respective transportation costs and demand.”
Regulation/Government Roads & Infrastructure
KEYWORDS ATA Breakthrough Fuel IFDA - International Foodservice Distributors Association SMC3
    • Related Articles

      Chamber of Commerce backs gas tax hike to fund highway programs

      Industry weighs impact of proposed independent contractor rule

      The Logistics Matters podcast: Phil Rich of Sweetwater on his company's holiday season preparations | Season 1 Episode 34

    Victoria kickham headshot
    Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.

    Recent Articles by Victoria Kickham

    Logistics Managers Index contracts in May

    WERC releases 2023 DC Measures report

    How to turn around failing warehouse operations

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • DHL Supply Chain will expand Locus Robotics fleet to 5,000 AMRs

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • Parcel carriers, shippers steer into choppy waters as a perfect storm of challenges approaches

    Now Playing on DCV-TV

    B0d646ac 1d71 44f7 9c47 80a0858638b7

    Improve Overhead Access with Custom VRCs

    DCV-TV 4: Viewer Contributed
    Tackling high-reach storage challenges is easy with Autoquip Lifts. We offer a wide variety of design features for Vertical Reciprocating Conveyors, or VRCs, to safely transfer materials from multiple levels based on the client’s specific needs. Don’t know where to start? We can create the perfect hydraulic or...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing