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Jennifer Geer
With 5th highest gas tax in the nation, Illinois freezes tax hike until next year
2022-06-23
President Biden proposes a federal tax holiday as Illinois' gas tax freeze starts July 1
(CHICAGO) At 39.2 cents per gallon, Illinois has the fifth-highest gas tax in the nation, according to data from the IGEN tax software company. IGEN released a report which breaks down the tax Americans pay on gas by state.
Additionally, mayoral candidate Willie Wilson is planning another gas giveaway in Chicago for July 9.
Illinois gas tax freeze
Amid the high gas prices, Gov. J.B Pritzker included a freeze on the gas tax increase for six months in the Illinois budget. The gas tax in Illinois was scheduled to go up by 2 cents starting July 1.
Now consumers will get a break from this increase until 2023. However, in 2023 it is possible drivers could get hit with two increases; the 2 cents per gallon at the beginning of 2023 and another expected increase on July 1, 2023.
Possible federal gas tax holiday
President Joe Biden is asking Congress for a federal gas tax holiday as he praised states that have already suspended gas taxes.
According to a statement from the White House, "President Biden understands that a gas tax holiday alone will not, on its own, relieve the run up in costs that we’ve seen. But the President believes that at this unique moment when the war in Ukraine is imposing costs on American families, Congress should do what it can to provide working families breathing room."
The federal gas tax holiday would suspend the 18-cent per gallon federal tax for the next three months.
Are the gas tax holidays any help to the average consumer?
Critics argue that gas tax holidays and freezes are a gimmick that do little to help consumers overall.
According to Kiplinger, a person who drives 12,000 miles per year and gets around 25 miles per gallon would save slightly more than $22 during the three-month tax holiday.
If we do the math, in Illinois, a person who drives 12,000 miles per year and gets 25 miles per gallon will save about $4.80 on the six-month freeze of 2 cents per gallon.
To sum it up, the average driver in Illinois might save about $27 total for the Illinois gas tax freeze and the proposed gas tax holiday.
Yes, it is a saving, but not much of one.
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Illinois stops the gas tax but gas will still go up past $6 an gallon and maybe more probably more they've spent so much money we shouldn't even be taxed
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