Thread: Trump suggests 25 cent increase in gas tax, senator says

Trump suggests 25 cent increase in gas tax, senator says

By Ashley Killough, CNN
Updated 6:09 PM ET, Wed February 14, 2018

Washington (CNN)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. Tom Carper.

In a bipartisan meeting with lawmakers at the White House, Trump noted that the federal gas tax hasn't been raised since 1993, said Carper, the top Democrat on the Environment and Public Works Committee.

"He said that he 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," Delaware's Carper told CNN in an interview. "And he came back to that theme again and again and again."

Transportation Secretary Elaine Chao did not rule out a gas tax Tuesday when she spoke to reporters at the White House, but she described it as "not ideal."

"The President has not declared anything out of bounds, so everything is on the table. The gas tax, like many of the other pay-fors that are being discussed, is not ideal," she said.

"There are pros and cons. The gas tax has 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."

Carper said Trump also offered "full-throated support for an increase in user fees" for roads, highways, and bridges.
Sen. Jim Inhofe, R-Oklahoma, who was also at the White House meeting Wednesday, took issue with the way Carper characterized Trump's support for a gas tax increase.

"He was not advocating that. He was looking at all the options," Inhofe said. "All he said was we need to do something and that is still on the table."

Asked if Trump offered political cover to lawmakers who supported a tax hike, Inhofe said he didn't recall "that word being used."

"I think that's an exaggeration," he said. "A combination of exaggeration and wishful thinking."

The administration laid out an infrastructure plan on Monday that aims to turn $200 billion in federal money into $1.5 trillion by leveraging local and state tax dollars and private investment. While the administration has not explicitly laid out a plan for revenue, local governments will likely turn to tolls and other user fees if asked to come up with more of their own funding in order to win federal incentive grants.

https://www.cnn.com/2018/02/14/polit...tax/index.html

Source: Trump endorsed 25-cent gas tax hike in White House confab


By LAUREN GARDNER
02/14/2018 03:44 PM EST
Updated 02/14/2018 04:10 PM EST

President Donald Trump signaled support for a 25-cent gas tax increase to help pay for infrastructure at a meeting with lawmakers on Wednesday, a source in the room told POLITICO.

Trump's support, though not confirmed by the White House, represents a stark departure from recent administrations and congressional leaders that have tip-toed around the issue because raising the gas tax is considered politically dangerous.

It's also a surprising turn from Trump, considering that most believed the best chance to hike the gas tax with the least amount of political pain was as part of the tax overhaul, H.R. 1 (115), whose ship has now sailed — and also because the splashy infrastructure plan the administration rolled out two days ago contained no mention of such a thing.

Trump told members he would lead on promoting a 25-cent hike to the federal levy, the source said. A second source familiar with the meeting said Trump backed the concept.

If Trump follows through on that promise, it could mean billions of dollars in new revenue for infrastructure and help solve a problem that has bedeviled policymakers for at least a decade: The gas tax, which pays for most federal surface transportation spending, has not been keeping pace with needs. But policymakers have not had the political will to raise the gas tax or find another source of revenues, leaving an increasing number of states to raise their own gas taxes to compensate.

The 18.4 cents-per-gallon federal gas tax has not been raised since 1993. A 25-cent hike phased in over five years would generate an additional $375 billion over the next 10 years, according to the U.S. Chamber of Commerce.

Many Democrats in Congress, especially transportation boosters, will cheer the news. But expect the fiscally conservative wing of the Republican Party — and its outside groups such as Americans for Tax Reform, Americans for Prosperity and others — to mobilize stiff opposition to anything that would bump the gas tax up.

The White House refused to comment on the meeting, but noted Trump has said "everything is on the table" when it comes to his infrastructure package.

"The gas tax has its pros and cons, and that’s why the president is leading a thoughtful discussion on the right way to solve our nation’s infrastructure problems," the official said.

https://www.politico.com/story/2018/...gas-tax-409647

It's not surprising at all, because it isn't true. It's one option on the table. The 25 cent gas hike proposal is an invention of the American Trucking Association to charge auto drivers a tax for damage caused to roads by trucks. Should we raise the gas tax by some amount? Probably, but 25 cents? I think not. Maybe feds raise that one by 5 cents and then states can raise theirs 5 cents and that's a dime together in states that would decide to do that. I'm good with that.

Trump Open to Raising Gas Tax and Negotiating Tax Overhaul Plan

May 1, 2017, 9:35 AM PDT

@ https://www.alipac.us/f19/%241-5-tri...erican-355758/

The American Trucking Association introduced this proposal for a 25 cent gas tax hike at least 3 years ago. Sure, "open to" raising the gas tax is not endorsing a 25 cent gas tax hike, JD2. At least it's not to me. We haven't raised the federal gas tax in 25 years. The last one was in 1993 bringing it to 18.4 cents per gallon. If we raised it a nickel, that's a 30% increase in federal gas tax revenues, that's a lot to replenish the Highway Trust Fund and pay for part of the roads and bridge work that's needed. That would be 50 cents to fill most auto tanks with 15 gallons. If states raise theirs a nickel also, it's less than $1 for most fills. I don't think Americans would have any problem with that. The whole idea of our interstate road system was to use gas taxes to pay for it

"WE" raised it in CA. last year.

3/29/17

California would increase fuel taxes under $52 billion road repair plan

4/7/17

California Legislature votes to raise gas taxes, vehicle fees by $5.2 Billion for road repairs and transit

Yes, I know you did. Hopefully, it will help you with your roads and bridges. Since CA has already raised its gas tax, they wouldn't need to raise it again. They would already have plenty of money to compete for some of this federal money from the infrastructure bill if one is passed.

NO GAS TAX!

CUT FOREIGN AID

DEFUND REFUGEE, ASYLUM, TPS AND ILLEGAL ALIEN BUDGETS!

GET THE MONEY FROM THERE!!!