House Votes to Roll Back Gas Tax Increase

WASHINGTON, D.C.: Just in time for the summer driving season, the House voted 301-108 to temporarily suspend a 4.3 cent per gallon gas tax increase passed in 1993. Minority leader Tom Daschle said the bill, which will reduce the gas tax to 14 cents per gallon until the end of the year, could be presented to President Clinton by Memorial Day. Looking to get as much mileage as possible out of the issue, GOP leaders took the opportunity to repeatedly remind voters that no Republican voted for the 1993 increase. Despite criticizing the GOP-sponsored repeal as pandering to voters, many Democrats ended up voting for the measure. Charging that oil companies would benefit instead of consumers, Democrats had sought to penalize companies who failed to pass on savings. The GOP blocked the move on a tight 225-183 vote after arguing that oil company promises not to pocket the tax cut and a GAO impact study would be sufficient. But although there are considerable political benefits to both parties as they try to show they are doing something to halt the recent gas price surge, the financial relief for consumers should be small. Under current estimates, the impact of a full tax repeal might be dinner at McDonald's for a family of four: Motorists who drive 12,000 miles a year at 20 miles per gallon could expect to save $15 during the next six months. -->