'Gas Tax Holiday' amendment offered then withdrawn

On behalf of Sen. John McCain (R-Ariz.), Sen. Jon Kyl (R-Ariz.) offered and then withdrew an amendment to the SAFETEA-LU technical correction bill April 18 that would suspend the collection of the 18.4 cents per gallon federal gasoline tax and the 24.4 centers per gallon federal diesel tax from Memorial Day through Labor Day.

Sen. McCain proposed the “Gas Tax Holiday” earlier this week in a major economic address for his Presidential campaign.

After speaking on the floor about the amendment, Sen. Kyl withdrew it but said he would pursue the amendment at a later date. Co-sponsors of the amendment included Sen. John Warner (R-Va.), Sen. Mel Martinez (R-Fla.), Sen. Richard Burr (R-N.C.), and Sen. Lindsey Graham (R-S.C.).

The Associated General Contractors of America (AGC) is seeking meetings with the amendment co-sponsors to discuss the proposal’s negative impacts. A suspension of the gas tax would cost the Highway Trust Fund (HTF) more than $8 billion and reduce federal highway funding to states by as much as 80%.