Texas Attorney General Ken Paxton and Democratic state Rep. James Talarico are turning high prices at the pump into a major issue in their U.S. Senate race, with both candidates calling for relief from federal fuel taxes while sharply disagreeing over energy policy and the war with Iran.
Talarico, D-Austin, used an appearance at a Carrollton gas station to call for an end to the Iran war and a temporary suspension of federal taxes on gasoline and diesel.
“Gas prices are skyrocketing. Diesel is more expensive than it’s ever been. Texas gas stations are running out. This is a crisis in our state,” Talarico said.
He argued that rising diesel prices are particularly damaging because transportation costs eventually make their way into the prices Texans pay for groceries, clothing and other everyday goods.
Talarico placed much of the blame on the war with Iran, arguing that the conflict is costing American lives while putting additional pressure on fuel prices.
“This war in Iran is a disaster. It is killing Americans; it is driving up the price of gas and diesel,” Talarico said. “When I’m in the U.S. Senate, I will fight to bring this war to a close so that we can bring down costs for Texans.”
Talarico pushes temporary fuel tax suspension
Until fuel prices come down, Talarico wants Congress to suspend the federal gasoline and diesel taxes. The federal taxes currently amount to roughly 18 cents per gallon of gasoline and 24 cents per gallon of diesel.
“This is the kind of immediate action that we need to provide Texans with some relief at the pump in the middle of this affordability crisis,” Talarico said.
He also challenged Paxton to support the proposal and oppose the Iran war.
Paxton responded by going a step further on the tax issue.
In a campaign press release, Paxton said he supports suspending the federal gas tax but believes Congress should permanently repeal the taxes instead.
“Repealing those taxes would put money straight back into drivers' pockets every time they fill up, and Washington should fund roads by cutting waste, not by taxing Texans at the pump,” Paxton wrote.
But Paxton quickly turned his response into an attack on his Democratic opponent's record.
He accused Talarico of supporting policies that would hurt Texas oil and gas producers and increase costs for consumers.
“Standing next to a gas pump doesn't make Talarico the authority on affordability or a friend of Texas drivers,” Paxton said. “It makes him a hypocrite who likes a photo op.”
Paxton doesn't join Talarico's Iran criticism
Paxton's response notably did not accept Talarico's challenge to oppose the war with Iran.
Paxton has previously defended U.S. military action against Iran. He told Bloomberg that Trump “didn’t have a choice if he wanted to protect the country from an Iran with nuclear weapons.”
That leaves the two Senate candidates with a significant point of agreement on fuel taxes but a much larger disagreement over the conflict Talarico says is helping drive the current affordability problem.
Former Republican primary rival Sen. John Cornyn has taken a different position on the proposed tax holiday.
Cornyn, who lost the Republican Senate primary to Paxton earlier this year, called suspending the gas tax a “short-sighted solution,” warning that eliminating the revenue without corresponding spending reductions would worsen the federal deficit and debt.
President Donald Trump has also raised the possibility of suspending the federal gas tax, although no concrete action has followed.
Any suspension or permanent repeal would require congressional approval before reaching the president's desk.
Abbott takes action on Texas diesel supply
Texas officials are also responding to concerns about diesel prices and availability.
Gov. Greg Abbott issued a disaster proclamation Monday, Sept. 28, aimed at loosening certain state regulations affecting fuel supplies and transportation.
The proclamation allows broader use of dyed diesel, which is normally sold without motor-fuel taxes for off-road purposes, while also suspending some oversize and overweight permitting requirements.
For Paxton and Talarico, however, the fight over fuel prices is becoming about much more than the roughly 18 cents in federal taxes attached to a gallon of gasoline.
Talarico is trying to connect Texans' frustration at the pump directly to the war with Iran and make affordability a defining issue in the Senate campaign. Paxton is countering by embracing an even broader fuel-tax repeal while attempting to turn the debate toward Talarico's record on taxes and the oil and gas industry.
