There are several bills still alive during this legislative session that will provide much needed relief to working families, such as measures that would raise the minimum wage and make the earned income tax credit permanent.

However, Hawaii families continue to struggle with the high cost of living and we should consider other, more immediate efforts to support our communities as we continue to recover from the pandemic. One way would be to suspend the state tax on gasoline.
Since the Russian invasion of Ukraine, the national average for the price of gas went up by 70 cents a gallon, the highest since the financial crisis in 2008. A recent AAA survey showed that 75% of Americans would adjust their lifestyle if the price of gas reached $5, an amount Hawaii already has exceeded.
According to AAA, Hawaii drivers are already paying $5.08 a gallon for gas, third highest in the country after California and Nevada. Suspending the state’s 17 cent-a-gallon fuel tax for the rest of the year would put hard-earned dollars directly into the pockets of consumers.
A growing number of governors and state lawmakers across the country are doing this to provide relief to drivers, especially since higher pump prices are expected as we cut off Russian oil imports.
So far, Connecticut, Georgia and Maryland have suspended their state gas tax for periods ranging from one month to three months. Nineteen other states are considering doing the same.
Nationally, governors from Colorado, Michigan, Minnesota, New Mexico, Pennsylvania and Wisconsin recently sent a letter to congressional leaders seeking a suspension of the federal government’s 18.4-cent-a-gallon tax through the end of the year. Hawaii should join this effort.
We should use every tool at our disposal to provide relief to Hawaii’s families.
There is understandable concern that by doing this, it would mean that the state highway fund would take a hit. But Hawaii, like many other states, will have a healthy cash surplus due to the influx of federal pandemic aid and a growing economic recovery which resulted in higher than expected income and general excise tax revenue.
Suspending the gas tax will put almost $7 million dollars a month back into the pockets of consumers that they can spend on other necessities such as groceries, rent and child care.
There is also legislation pending in Congress that would offset revenue lost by suspending the federal gas tax by transferring matching general fund dollars to states’ highway and public transit programs.
Suspending the gas tax even for a limited time will benefit all of us, especially low-wage earners. It is not a cure-all and market instability will continue to affect prices, but we should use every tool at our disposal to provide relief to Hawaii’s families.
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