President Trump Suggests $0.25 Fuel Tax Hike as a Means to Fund Infrastructure
Tax increase is part of the administration’s plan to generate $1.5 trillion in infrastructure moneyby Kirby, on
President Donald Trump believes that increasing gas and diesel taxes by 25 cents would go a long way in helping the administration achieve its goal of generating $1.5 trillion for its new infrastructure plan. The ambitious plan was presented in a bipartisan meeting at the White House. As expected with all things related to politics, the specific details on the proposed increase in fuel tax vary depending on who you ask.
Political discussions as complex as this often bring out opinions on all sides. That’s certainly the case when you’re talking about a plan to increase gas and diesel taxes, something that hasn’t been done since 1993.
Democratic Senator Tom Carper, the top Democrat on the Environment and Public Works Committee, told CNN that the president “knew it was a difficult thing for legislators to support and said that he would support the leadership to do that and provide the political cover to do that.”
Carper added that Trump also offered “full-throated support for an increase in user fees” for roads, highways, and bridges, a suggestion that Republican Senator Jim Inhofe took issue with. "He was not advocating that. He was looking at all the options," Inhofe told CNN. "All he said was we need to do something, and that is still on the table."
Raising gas and diesel taxes across the board is an important issue in the U.S., largely because a lot of vehicles that are on the road now are of the pickup and SUV persuasion
Transportation Secretary Elaine Chao echoed Inhofe’s position, saying that Trump is looking at all options that are on the table. Chao did admit that the gas tax is not ideal. “There are pros and cons,” Chao pointed out. “The gas tax has an adverse impact, a very regressive impact, on the most vulnerable within our society; those who depend on jobs, who are hourly workers. So these are tough decisions, which is why, once again, we need to start the dialogue with the Congress, and so that we can address these issues on this very important point."
If there’s one thing everybody can agree on, it’s that. Raising gas and diesel taxes across the board is an important issue in the U.S., largely because a lot of vehicles that are on the road now are of the pickup and SUV persuasion. In other words, these are cars that aren’t known for their fuel efficiency. Adding a 25-cent tax on an important commodity like fuel would have wide-ranging consequences on a lot of people in the country.
Expect more discussions to happen as talks about the government’s infrastructure plan heats up. One thing I can say is that it’s probably not going to go as smoothly as most people hope it will.
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