How effective are gas tax holidays at helping motorists' wallets?
ABC News
As more states consider suspending their gas taxes to help motorists with rising prices, economic exerpts say they could end up hurting consumers in the long run.
As gas prices continue to soar across the country, three states have opted to temporarily waive their gas tax to provide relief for motorists. Other states are mulling similar plans.
Last week, Georgia Gov. Brian Kemp and Maryland Gov. Larry Hogan signed legislation that suspended their states' gas taxes for a limited period. On Thursday, Connecticut Gov. Ned Lamont signed a legislative package that included a tax holiday on the state's gas tax during the spring.
While the move may save drivers around 30 cents per gallon at the pump, economic and policy experts warn that it is only a stop-gap solution.
"They may not lower [gas] consumption and they might increase it," Patrick De Haan, the head of petroleum analysis at gas price app GasBuddy, told ABC News of the tax holidays. "I would love to pay less at the pump too, but this is a Band-Aid solution."
