Proposal to eliminate R.I. gas tax in 2022, economic recovery ‘far behind the national average’

PROVIDENCE, R.I. (WLNE)- The Senate Republican caucus introduced a proposal on Tuesday that would eliminate Rhode Island’s gas tax in 2022.

This is in an effort to provide relief to residents as inflation continues to drive up cost of gas and other consumer goods.

In a statement, Minority Whip and State Senator Jessica de la Cruz said, “We want to direct the influx in tax revenue back to residents and provide relief from the crushing pain at the pump.”

“Our state budget is benefiting from inflation as the gas tax brings in new, unexpected revenue. Meanwhile, the people of Rhode Island are struggling to balance their budgets with no relief in sight,” continued Cruz.

A new report by the Rhode Island Public Expenditure Council shows that the state’s economic recovery is behind the national average.

The gas tax is currently 35 cents per gallon in the state.

Senate Minority Leader Dennis Algiere says the state can afford the tax cut as Rhode Island currently has a $600 million budget surplus.

Algiere says that the surplus, along increased consumer spending, will allow the state to provide a temporary gas suspension.

“If people aren’t spending as much on gas, they’re spending it elsewhere in the community.  On things they need for their family and at local businesses.  And that spending will not only help families when it comes to kitchen table economics and reducing financial strain, it will help the economy, too,” Algiere said.

According to Republican leaders, if eliminated, this would save everyday Rhode Islanders $150 million.

The tax cut would provide aid to families struggling with inflation.