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Oregon Democrats have genius political strategy: raising the gas tax heading into the midterm elections
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Oregon Democrats have genius political strategy: raising the gas tax heading into the midterm elections

Fortune · May 11, 2026, 5:38 PM

Appealing to voters’ anxieties about the soaring cost of living is central to Democrats’ messaging in their hopes of big wins in this year’s midterm elections. In Oregon, a question on the primary ballot is complicating that strategy. The Democratic-controlled Legislature raised the state gas tax and a range of fees last fall as a way to pay for road improvements and plug a hole in the state’s transportation budget. Republicans responded with a petition to repeal the increases, leading to a referendum that will land before voters just as the Iran war is causing the price of gas to skyrocket around the United States. “It is a hell of a time to be raising gas taxes on people,” said Jeanine Holly, filling up her tank on a recent morning in Portland. The gas tax repeal on the state’s May 19 primary ballot comes amid widespread disruptions in the oil industry from the war with Iran started by Israel and President Donald Trump. Discontent is high among U.S. consumers across the political spectrum, with the price of gas topping $4.50 a gallon nationally on Friday and averaging about 80 cents more per gallon in Oregon. The referendum will give voters a chance to weigh in on a hot-button issue hitting them directly in the pocketbook at a time when prices remain elevated for everything from housing to groceries. Nationally, Democrats have focused on the affordability concerns similar to those that helped propel Trump to victory in 2024. Some of their candidates have even proposed ways to cut taxes as a way to promote their agenda and counter a traditional GOP strategy. “It’s difficult to imagine a worse situation for … a gas tax increase than right now in American politics,” said Chris Koski, professor of political science and environmental studies at Portland’s Reed College. Republicans sense an opportunity Republicans wasted no time in appealing to voters after the Legislature and Democratic governor signed off on the tax increase, which also included a higher payroll

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