Indiana Gas Tax Increase Looms: Prices Could Jump 23 Cents Per Gallon After Temporary Suspension Ends

So guys, I really hope you’re enjoying this temporary reprieve at the pump. What was this, two weeks ago now? Was it last week? I don’t know, recently — April 8th I think was the day. So that would have been two weeks ago now.

How Indiana’s Temporary Gas Tax Suspension Impacts Fuel Prices

Braun suspended the sales tax on gas — not the gas tax, but the sales tax on gas — and that was for one month. It was estimated to save Hoosiers $0.17 a gallon. Reminder, we have two taxes on gas: the sales tax on gas, so 7% of whatever the price of gas is, and then an excise tax on gas. Two taxes on gas. The Capital Chronicle has a new report out that says keep in mind, Braun only suspended the sales tax on gas for one month in May. If Braun does not suspend the sales tax again, gas is going to go up 23.3 cents per gallon. 23.3 cents per gallon. Keep in mind, the suspension he did this month was $0.17. If Braun does not continue the suspension, the price of gas will automatically go up 23.3 cents. Why? Because the sales tax on gas is based on the price of gas, and gas is a month behind. The price of gas has skyrocketed into April, which means the sales tax is going to be higher.

Why Gas Prices Could Spike When the Sales Tax Returns

It was interesting listening to Braun on Hammer and Nigel yesterday. They’re asking him about suspending the sales tax on gas, and he’s acting like he stormed Iwo Jima, like he did something incredible. They kind of asked him about that — it’s a Republican state, right? Aren’t Republicans supposed to be about tax cuts? Aren’t they supposed to be about helping people? Shouldn’t this have been a no-brainer? And he responds as though he’s done something incredible, that for one month he saved you $0.17 a gallon on gas. Then he throws out the number — $52 million, I think, is what he said it would save Hoosiers for the month. But you guys just got hundreds and hundreds of millions of dollars in over taxation because they raised taxes by $1 billion, claiming they had no money. Then the revenue forecast was off by hundreds of millions. So now you have so much money that you’ve allowed Hoosiers to pay for someone else’s daycare to the tune of $200 million. So he does the socialized daycare for $200 million. You, who pay the tab for everybody, get $52 million back for one month, and he acts like he’s done something great for you. Like he was on the beach at Omaha on D-Day. It’s unbelievable, the lack of priorities. And unless he does it again, you’re about to get hit worse than before.

Debate Grows Over Expanding Gas Tax Relief and Government Spending Priorities

So Greg Porter is the top Democrat on the budget-writing committee, Ways and Means. He called for Braun to not only keep the sales tax on gas suspended, but also suspend the excise tax. Think about how complicated this is. I know what’s going on, and it’s hard for me to explain. There are so many taxes, it’s hard to keep track. I live in this and still have to catch myself. How would the average person understand it? They wouldn’t. And that’s what they want. So Greg Porter called on the governor to suspend both taxes. And unless I’m wrong, he’s the first person from either party I’ve seen publicly say suspend the excise tax. According to the Capital Chronicle, suspending both taxes would increase savings on a 16-gallon fill-up from $2.75 to $8.51. Think about it. Every time you fill up your car — and not everybody has a 16-gallon tank — but even then, that’s real money. Quote: “I support the sales tax suspension, but Hoosiers need more than a couple of dollars. Prices have started to fall. But gas is expected to stay above $3 a gallon for the rest of the year. Prices go up like a rocket and come down like a feather.” Okay, great. Here would be my question to Greg Porter. You guys want all the stuff you want — way more than what Republicans want. How are you going to pay for it? I’m all on board. You know me, I’d be slashing left and right. It’d be like a Labor Day sale. The government’s having a going-out-of-business sale if I were in charge. Prices so low everything’s got to go. I don’t want to make money, I just want to give you your money back. But Greg Porter doesn’t want smaller government. Greg Porter doesn’t want more efficient government.