Cortez Masto backs gas tax holiday to 'lower costs for Nevada families,' but it wouldn't save them a cent
Nevada law automatically increases state gas tax to correspond to any cuts in federal gas tax
Sen. Catherine Cortez Masto said she proposed a federal gas tax holiday "that will help us lower costs for Nevada families."
But her bill would not actually change the price of gas in Nevada.
That's because Nevada has a law that automatically increases its gas tax "equal to the amount by which the federal tax is reduced." Therefore, if the bill became law, constituents for Cortez Masto, D-Nev., will not actually get a tax break even as the federal government's revenues take a hit.
RUSSIA-UKRAINE: GERMANY STOPPING NORD STREAM 2 PIPELINE APPROVAL
Cortez Masto is one of vulnerable Democrat senators to support the "Gas Prices Relief Act" earlier this month, which would suspend the federal gas tax until the end of this year. The effort was led by Sens. Mark Kelly, D-Ariz., and Maggie Hassan, D-N.H.
Sen. Catherine Cortez Masto, D-Nev., listens as Secretary of Interior Deb Haaland testifies during the Senate Energy and Natural Resources Committee hearing on the Department of the Interior budget on Tuesday, July 27, 2021. (Bill Clark/CQ-Roll Call, Inc via Getty Images / Getty Images)
Sen. Raphael Warnock, D-Ga., is also a co-sponsor of the bill.
Though Republicans like Sen. John Cornyn, R-Texas, are attacking the gas tax holiday effort as a "phony gimmick" rather than a proper solution to inflation, suspending the tax could save many Americans some money at the pump.
Those Americans, however, would not be in Nevada.
FBN EXCLUSIVE: NEARLY 1 IN 4 AMERICANS COMPROMISE ON FOOD, MEDICINE TO PAY ENERGY BILL
This is not the first time a gas tax holiday was proposed during a time when Americans were struggling with gas prices. Late Sen. John McCain, R-Ariz., pushed such an idea when he was running for president in 2008.
Alex Reyes, 28, filled his gas tank, Nov. 15, 2021, in Los Angeles. (Al Seib / Los Angeles Times via Getty Images / Getty Images)
The Las Vegas Review Journal reported at the time that Nevadans would not get any relief from a gas tax holiday if McCain was elected because of the state's law.
Another criticism of a gas tax holiday is that it would cut the amount of money in the federal Highway Trust Fund, which it finances.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"Suspending the 18.4 cents per gallon federal gas tax is not going to give consumers significant relief — if any at all — at the pump because the oil companies will just add the forgone federal tax to their coffers in whole or part," House Committee on Transportation and Infrastructure Chairman Peter DeFazio, D-Ore., said last week.
Sen. Catherine Cortez Masto, a Democrat from Nevada, during a Senate Energy and Natural Resources Committee hearing on Capitol Hill in Washington, July 27, 2021. (Al Drago/Bloomberg via Getty Images / Getty Images)
"What suspending the tax will do is blow a $26 billion hole in the highway trust fund this year and create uncertainty surrounding the funding of our nation’s infrastructure in the future," he added.
Cortez Masto's campaign did not respond to a request for comment on this story.