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AAP
AAP
Business
CLAIRE RUSH (Associated Press)

Oregon voters reject Democrats' gas tax increase as Iran war causes gas prices to soar

PORTLAND, Ore. (AP) — Oregon voters on Tuesday rejected a gas tax increase passed last year by Democratic lawmakers, a victory for Republicans who put the issue to voters just as the war with Iran was causing prices at the pump to soar.

Democrats had raised the state gas tax by 6 cents a gallon and increased a series of fees to help pay for road improvements and plug a hole in the state's transportation budget. Republicans responded by launching a successful referendum campaign to refer the tax and fee increases to voters.

The failure of the gas tax was no surprise to Democrats, who acknowledged the timing of the vote was against them. The tax increase also ran counter to national Democrats' strategy of focusing on affordability concerns in the hopes of winning back control of Congress in this year's midterm elections.

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