Gas tax cuts stopped in two states: And some drivers who had been expecting lower fuel taxes are disappointed.
Carl Davis, research director at the Institute on Taxation and Economic Policy (ITEP), notes on the Tax Justice Blog that automatic gas tax cuts had been scheduled to take place in Kentucky and North Carolina. Lawmakers in both of these states, however, decided to instead place a floor on their gas tax rates.
The reason for keeping the taxes at current rates was to minimize the loss of revenue designated for infrastructure projects.
That intervention was applauded by ITEP and Citizens for Tax Justice, which argue that such state action is crucial right now since “Congress’ commitment to adequately funding infrastructure remains highly uncertain.”