UTCA STATEMENT ON PROPOSED FEDERAL GAS TAX HOLIDAY

Farmingdale – Utility and Transportation Contractors Association (UTCA) CEO Robert Briant, Jr., issued the following statement today regarding a proposal to implement a federal gas tax holiday due to increasing fuel costs:

“I recognize the desire to find relief from increasing gas prices. Our members are feeling it too. The proposed gas tax holiday, while well-meaning, would not be an answer to this problem though. In fact, it would ultimately create more and potentially far worse financial hardships for working people than any increase in gas costs. The UTCA and its over 1,000 members respectfully urge our congressional delegation to remove or not add their names as sponsors of this legislation. Instead, we must focus on domestic energy production in all areas if we want to create real solutions to rising gas prices.

“It is worth remembering the perils of such a holiday. First and foremost, gas taxes, whether federal or state, have little to do with increasing costs. As noted by the American Road and Transportation Builders Association (ARTBA), gas prices are generally set due to the refining and distribution of oil. In fact, an ARTBA study ‘found that on average, one-third of an increase—or decrease—in state gasoline tax rates is passed through to consumers in the retail price on the day the change takes effect, with no significant impact after that time.’

“There are other factors that determine cost. At the end of the day, the gas tax could barely be considered one of them. What a gas tax holiday would do, without question, is siphon away badly needed dollars to fund the bipartisan Infrastructure Investment and Jobs Act. This money is meant to fix and improve the nation’s crumbling infrastructure. Not only does this improve public safety through stronger and safer roads, rails and bridges, but infrastructure investments create thousands of jobs and spur economic growth.

“Any dollars lost through this holiday would either have to be made up by taxpayers in some other form (higher taxes elsewhere) or would mean shortchanging the very infrastructure improvements we so badly need right now. A 2021 report by the American Society of Civil Engineers found that over 6,700 bridges in New Jersey alone are structurally deficient, meaning they are in need of significant repair. The same report also noted that over one third of our state’s roads are in poor condition.

“Can we really afford to be putting fewer dollars into upgrading this infrastructure right now? Especially considering it would do almost nothing to relieve pressure on consumers. We ask our federal representatives in Washington to please take a pass on this idea. It will create far more long-term harm than short-term relief.”

UTCA of New Jersey is a non-profit trade association headquartered in Wall, New Jersey. UTCA represents approximately 1,000 member firms in the public and private sectors, active in all phases of heavy, highway, utility, and marine construction, as well as site work including remediation of brownfields and contaminated sites. For more information, log on to http://www.utcanj.org and follow on Twitter @UTCANJ.

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