(Washington, D.C.) – The Council for Citizens Against Government Waste (CCAGW) today commended Rep. Marilyn Musgrave (R-Colo.) for her efforts to stop an increase in the federal gas tax, and urged other members of Congress to join in her fight. 

“With Memorial Day right around the corner, Americans are packing up their cars and getting ready to hit the road for their family vacations,” CCAGW President Tom Schatz said.  “The last thing on these families’ minds should be an increase in the gas tax.  The additional cost will make vacations far more difficult next year.”

The current federal gas tax is $.184 per gallon; with the state gas tax average at approximately $.22 per gallon, the average family has a burden of $660 per year.  The proposed $.054 cent increase would raise the total gas tax incurred by each family to almost $800 annually.  According to the American Automobile Association, the current national average for regular unleaded, self-serve gasoline is $1.50 per gallon, down $.22 from a record high on March 18.  However, gas prices have not dropped as fast as crude oil ($40 per barrel in March to $25 today).   The price of gas will remain in flux due to an uncertain Middle East situation. 

“In a staggering economy, raising the gas tax will only contribute to the downward spiral,” Schatz continued.  “Increasing the cost of gas will have a direct effect on every sector of the economy.  Consumers will not just be paying at the pump.  From vacation travel to the transportation of goods, there will be sharp increases in prices.  Moreover, there is no guarantee that the extra tax burden would be used in a beneficial manner.”

Although most of the revenue collected from the gas tax is calculated and divided among the states, some of the money is considered discretionary funds and used for Transportation Appropriations Subcommittee members’ pet projects.  According to CAGW’s 2002 Congressional Pig Book, more than $544 million in federal highway funds was removed from state control and put in the hands of Congressional appropriators in the fiscal 2002 budget. 

“Increasing the gas tax by any amount from its current level is simply outrageous,” Schatz concluded.  “With the war on terror, a fiscal 2003 budget deficit of more than $300 billion, and increased expenses for homeland security, there is no room for massive increases in any tax.  Any gas tax hike would be a fiscally irresponsible act by a tax-guzzling Congress.”

CCAGW will be joining Rep. Musgrave at a press conference on Wednesday May 21, at noon on the Cannon House Office Building Terrace to oppose any increase in the gas tax.

The Council for Citizens Against Government Waste is the lobbying arm of Citizens Against Government Waste, the nation's largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.