Calls to Suspend Federal Gas Tax to Provide Relief to Small Businesses
The NFIB warns that rising energy costs are affecting operations, consumer prices, and business growth throughout the United States.
Negocios Now Editorial Staff
In light of the sustained increase in fuel prices, the National Federation of Independent Business (NFIB) has urged Congress to temporarily suspend the federal gas tax in an effort to alleviate the economic pressure facing thousands of small businesses across the United States.
The call was issued by Louis Bertolotti, the organization’s Senior Director of Federal Government Relations, in an op-ed published in the Washington Examiner, in which he outlines the direct impact that rising energy costs are having on the sector.
“The NFIB represents nearly 300,000 small business owners throughout the United States. In recent years, we have heard a growing number of concerns regarding the cost of energy and how it impacts small businesses,” Bertolotti noted.
According to data from the organization itself, more than 80% of small businesses consider energy to be a significant cost in their operations, while 42% state that these expenses have increased substantially over the last three years. This pressure has forced many business owners to pass these costs on to consumers.
“High energy costs do not stop with the business owner. The majority of respondents reported that they have been forced to raise consumer prices in order to manage these new costs,” he explained.
The proposal centers on suspending the federal fuel tax, which currently stands at 18.3 cents per gallon of gasoline and 24.3 cents per gallon of diesel. According to the Congressional Research Service, state and federal taxes account for approximately 11% of the average retail price of fuel.
For Bertolotti, temporarily eliminating this burden would be one of the quickest ways to provide economic relief to both businesses and consumers. “The fastest way to provide relief to small business owners is to take this out of the equation and give consumers immediate and tangible relief,” he asserted.
Furthermore, he emphasized that having access to affordable and stable energy is key to local economic growth. “When energy is affordable and reliable, business owners can operate with the certainty they need to strengthen their local economies, create more jobs, and contribute to their communities across the country.”
The NFIB representative also highlighted that some state governments have already begun to acknowledge this issue, adopting similar measures to reduce the tax burden on fuel. “Pro-small business governors in multiple states are recognizing this reality. Congress, now it is your turn to act,” he emphasized.
The federal gasoline tax in the United States has remained virtually unchanged since the 1990s, yet its relative impact has increased amidst periods of energy volatility. In recent years, fuel prices have been subject to global pressures, including geopolitical conflicts, shifts in oil production, and adjustments in energy policy.
Small businesses—particularly those in sectors such as transportation, construction, and services—are especially sensitive to fuel costs. The National Federation of Independent Business has historically advocated for tax relief policies for the sector, arguing that small businesses account for a significant portion of employment in the United States.
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