Should Pennsylvanians get gas tax rebates? | Pro/Con

What are you paying more for lately? For many, the first thing that comes to mind is gasoline.

As gas prices in our area have risen more than 40% in a year, they’ve become a political lightning rod, with representatives and candidates proposing solutions, including reducing the gas tax.

Is this a good idea? And if so, what form should these rebates take? We asked a candidate for governor and two Philly residents to weigh in: Should Pennsylvanians get gas tax rebates?

By Fae Ehsan and Caitlin Nagel

While putting money directly into people’s pockets is undeniably a good thing, and has been proven to lift people out of poverty, there are many ways to do this without harming people — which is what a gas tax rebate would do.

A gas tax rebate would be harmful to the environment, unfair to those who can’t afford a car or choose not to own a car, and exacerbate racial and wealth inequity in our commonwealth.

A recent proposal by a gubernatorial candidate would offer a tax refund of $250 per car — up to four cars per household. That means that a couple who owns four gas-guzzling SUVs between them could receive a reward of $1,000, while a family of four who can’t afford a car wouldn’t receive any assistance at all. Other proposed legislation would cut federal and state taxes on gas by up to 50%.

In the top 100 U.S. metro areas, low-income people make up only 24% of car-owning households. If policymakers want to help people who are struggling to get by, a gas tax rebate is not the answer.

“If policymakers want to help people who are struggling to get by, a gas tax rebate is not the answer.”

There are also serious racial inequities within the gas tax rebate proposal. The city of Philadelphia’s transportation strategic plan found that 39.6% of people of color do not own a car, compared with 23.5% of white people in Philadelphia.

Policymakers should absolutely put money in people’s pockets — but using car ownership as a criterion is misguided and unfair. There are low-income people and people of color who rely on their cars to get to work, but there are a lot of other ways to help them and others who are struggling to get by.

Gas prices aren’t the only issue plaguing people in our region. A recent study showed that half of Pennsylvanians were struggling with health-care costs in 2020, and two-thirds of Pennsylvanians were worried about how they would pay for medical care in the future. Where is the urgency to provide financial relief for these Pennsylvanians?

Pennsylvanians are also worried about rising costs of education, food, housing, and child care. And for the lowest-income Pennsylvanians, Temporary Assistance for Needy Families (TANF) cash assistance grants haven’t risen since 1990, leaving a family of three with just $403 per month in assistance, even as costs have risen exponentially. Gas tax rebates are a Band-Aid for the larger problem of rising costs, coupled with a minimum wage that has failed to keep up with these costs.

» READ MORE: How much you’re paying in gas taxes and what Pa. candidates for governor plan to do about it

A $400 check for all Pennsylvanians — regardless of whether or not they own a car — might not make a difference to the wealthiest Pennsylvanians, but would make a world of difference to people who can’t afford medical copays, prescriptions, or even food for their families.

Tying that rebate to car ownership may help drivers get around, but it strands low-income people — particularly those in areas of the commonwealth that do not have a robust public transport system.

Finally, a gas tax rebate policy denies the climate crisis we are facing. We are seeing the impact of climate change already, from flooding to heat waves to wildfires. Putting more money into the pockets of Big Oil CEOs by incentivizing driving is a deadly proposition. Conversely, increasing public transportation availability, frequency, and ridership is one way we can reduce our carbon footprint. And it will ultimately put money into people’s pockets by helping people without cars get to work.

A gas tax rebate won’t help the people who need it most — and will instead cause harm to the planet. Don’t tie payments to car ownership.

Fae Ehsan and Caitlin Nagel are Philadelphia parents, pedestrians, and frequent riders of public transportation.

By Josh Shapiro

Pennsylvanians are being crushed under a mountain of rising prices. The cost of everything from food to gas keeps going up, weighing on people all across the commonwealth.

Many of the drivers of those rising costs are global, but here in Pennsylvania, we should take action to make it easier for people to pay their bills and support their families.

The cost of gas, in particular, has skyrocketed over the past several months. Regular gas in Pennsylvania is 44% more expensive than it was one year ago, and residents who have a car are feeling the pain at the pump right now — and for millions of people, their car is their only means of getting to work or getting their kids to school.

That’s why I propose sending Pennsylvania drivers a $250 gas tax refund for every personal passenger vehicle registered in the commonwealth, up to four per household or $1,000.

Unlike the Republican candidates running for governor, I want to put money directly into Pennsylvanians’ pockets. Their “plans” call for cutting the gas tax, and while that’s a nice sound bite, in reality, it would undermine public safety without providing much relief.

Here’s why — the gas tax pays for the Pennsylvania State Police and helps us repair our roads and bridges. I don’t want to reduce that funding by even a penny.

The other plans either don’t identify a source to make up lost revenue that pays for infrastructure and state police, or suggest sources that won’t work and would put Pennsylvania further into debt.

» READ MORE: Shapiro rolls out first tax relief plan of governor's race

I have no patience for anyone trying to score political points by pushing reckless plans that would cut infrastructure projects when there are more than 3,300 bridges rated in poor condition in Pennsylvania. Furthermore, I won’t let them defund the state police.

What my opponents also won’t tell you is that in states that have cut the gas tax, oil producers capture as much as 30% of the cuts to boost their bottom lines, and only about one-third of gas tax cuts are ultimately passed along to consumers.

I want to put money in Pennsylvanians’ pockets. I’m not interested in helping oil company executives get richer or in subsidizing out-of-state motorists passing through our commonwealth. My rebate would only go to Pennsylvania residents and will be fully paid for by federal pandemic aid, so there’s no risk of shortchanging other programs.

However, I also know we can’t stop there — we need to help those without cars keep up with rising costs, too.

“We need to help those without cars keep up with rising costs, too.”

I propose eliminating the state cell phone tax — specifically, the gross receipt and sales tax on cell phone service. We shouldn’t touch the 911 fee that helps fund public safety, but by eliminating this 11% state tax, we can reduce the tax burden by $317 million and save Pennsylvanians money on their monthly cell phone bill. A cell phone is a virtual necessity today, and that money will add up over time.

Finally, I propose lowering household costs by expanding the Property Tax/Rent Rebate Program. While costs have risen 43% since 2006, the rebate has remained the same. It’s time government catches up to Pennsylvanians’ everyday reality.

Under my plan, seniors will get between $350 and $500 more than they do under the current program, and we will expand the program to 275,000 more Pennsylvanians as we raise the income threshold for renters and homeowners, so they can afford to stay in their homes.

My relief plan is fully paid for and directly addresses the struggles so many Pennsylvanians are facing right now. I believe the legislature should take up this plan immediately, but if they don’t, I will be ready to get it done on day one as governor.

Josh Shapiro is the attorney general of Pennsylvania and a candidate for governor.