In a case of unexpected political bedfellows, James Talarico on Monday aligned himself with President Donald Trump over their calls to suspend the federal gas tax — and took a dig at U.S. Sen. John Cornyn for his previous opposition to the measure.
Talarico, the Democratic nominee for U.S. Senate, has advocated for temporarily lifting the federal gas and diesel tax to help combat soaring fuel prices since the U.S.-Israel war in Iran began in February. On Monday, Trump said he would move to suspend the 18.4-cents-per-gallon gas tax, which primarily funds federal highway and mass transit programs.
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“I applaud President Trump’s support for a federal gas tax suspension,” Talarico said in a statement. “Lowering prices at the pump should be a bipartisan commitment. I urge Senator Cornyn to drop his opposition to suspending the gas tax. He should join President Trump and me in supporting this critical tax relief for Texans.”
Cornyn previously panned the proposal as “not really a solution” and one that would “explode the deficit.” But on Monday afternoon, after Trump endorsed the idea, he said he would be open to a temporary gas tax holiday.
“There’s a difference between a temporary suspension and a permanent suspension,” Cornyn told reporters at the Capitol. “I don’t know exactly what the president has in mind. I think a temporary suspension getting through this sort of bumpy time because of uncertainty about energy prices — I could live with that.”
Cornyn is in the midst of a viciously competitive primary runoff election against Attorney General Ken Paxton, a hero of the hard right. With Republicans more broadly grappling with how to minimize the political backlash to rising costs and a new war in the Middle East, Democrats are seizing on a favorable national political climate, Trump’s low approval ratings and a bruising Senate GOP primary contest to support their effort to flip a statewide seat for the first time since 1994. Early voting in the Republican runoff begins in a week.
Talarico criticized Cornyn’s previous opposition to lifting the gas tax, arguing that the senior senator is “never worried about the deficit when it comes to billionaire tax cuts or new foreign wars, but when we start talking about lowering gas prices for working people, suddenly he’s a deficit hawk.”
“We should lower the deficit, and we should do it by closing billionaire tax loopholes and ending this disastrous new war,” Talarico said on CNN.
According to the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog, a monthlong gas tax holiday would cost the federal government $3.5 billion, and a six month holiday would cost $21 billion. With the gas tax set at 18.4 cents per gallon and the diesel tax at 24.4 cents per gallon, a tax holiday would cover only a small percentage of the price at the pump. Average gas prices stood at just over $4 a gallon in Texas on Monday, according to AAA, up by almost 50% since a year ago.
Cornyn said Monday that he would be interested in proposals for how the federal government would make up the shortfall caused by a gas tax holiday. Talarico has said he would look to fill that gap through revenue from proposals he’s unveiled to “close billionaire tax loopholes,” including by ending the “carried interest loophole,” which allows investment managers to claim a lower tax rate by treating capital gains as profit rather than income; ending the “buy, borrow, die” loophole whereby the ultrawealthy skirt taxes by borrowing against their wealth to access tax-free cash flow; and restricting offshore bank accounts that his campaign said lead to more than $100 billion in annual lost revenue.