Trump Voices Support for Increasing Gas Tax, Report Says

  • Trump Voices Support for Increasing Gas Tax, Report Says

Trump Voices Support for Increasing Gas Tax, Report Says

President Donald Trump suggested Wednesday that a 25 cent increase in gas and diesel taxes would be needed to help pay for the administration's new infrastructure plan, according to Democratic Sen.

"I've spoken with Republican leaders". The White House unveiled a proposal Monday to use a $200 billion federal investment to leverage more than $1 trillion in public and private funding to pay for the upgrades. "If there was all of a sudden an urge by Congress to try be fiscally concerned, a 50-cent gasoline tax. might do a great deal for making us competitive with folks in the gasoline world, in terms of raising the overall price of fuel".

"Trump's gas tax idea appears dead on arrival", Jonathan Swan wrote for Axios.

Other funding options that appear in the president's infrastructure plan include allowing more interstates to be turned into toll roads, or charging fees at rest stops. The current gas tax, set at 18.4 cents per gallon, was last raised in 1993. The proposal comes on the heels of an expansive infrastructure plan, an ambitious budget bill and tax reforms that many analysts said would add to a mounting federal deficit. Raising the gas tax by a quarter could generate $36 billion a year, said Benjamin Salisbury, an analyst with B. Riley FBR Inc., in a research note to clients.

Last year, ATA proposed that an extra 20-cent per gallon "fee" be built into the price of transportation fuels collected at the terminal rack - an extra fuel tax to be phased in over four years with the monies dedicated exclusively to the Highway Trust Fund (HTF) for roadway expansion and upkeep needs.

However, such influential tariffs would need the approval of Congress, and a similar idea of a border adjustment tax was shot down by congressional Republicans past year.

"It's quite necessary and Congress has known it's necessary for a long long time", Schenendorf, a lawyer at Covington & Burling LLP, said in an phone interview.

While anti-tax conservatives on Capitol Hill are chafing at the idea just months before a crucial midterm election, the U.S. Chamber of Commerce wants it phased in over a five-year period, saying it would raise $375 billion in the next decade. To put this in a clearer context, for an average family of four, the proposed 25-cent jump in a gallon of gas would show up immediately on the family's transportation fuel bill. "President Trump's infrastructure proposal is a disaster", said Shelley Poticha, of the Natural Resources Defense Council. Increasing the price of gas at the pump could be seen as a violation of the pledge many Republicans have taken to oppose tax increases. "Republicans aren't about to hike taxes for the Trump voters driving their pickup trucks to work every day".

Guess we know the answer to that question now ...