Possible 25 Cents A Gallon Gas Tax To Help Pay For Trump's Infastructure Plan?

Sometime today, President Trump will call for a $1.5 trillion infrastructure initiative and will offer $100 billion in federal incentives for states and cities that invest in infrastructure improvements and building projects. The country's dilapidated infrastructure is in dire need of repair, but many lawmakers doubt that a federal incentive of $100 billion will be sufficient to "spur an infrastructure spending boom."

The proposal, to be unveiled the same day as Mr. Trump’s 2019 budget, faces long odds on Capitol Hill, where members of both parties — particularly Democrats — are skeptical of any plan that fails to create a dedicated new funding stream to address the nation’s crumbling infrastructure. Lawmakers are also doubtful that such a small federal investment will be sufficient to spur an infrastructure spending boom.

The president, who plans to invite Democrats and Republicans to the White House this week to call for a sweeping bipartisan infrastructure initiative, will propose to devote a total of $200 billion in federal dollars to the program, according to senior White House officials who previewed the plan on the condition of anonymity. Half of that amount would go toward matching funds that states and cities commit to financing their own infrastructure projects.

www.nytimes.com...

Fixing the country's infrastructure was one of president Trump's campaign promises, which was hoped to create thousands of new jobs. President Trump has mentioned that he's open to "new sources of funding" and will let lawmakers come up with alternate ways to finance this massive infrastructure effort. Republicans are now considering raising the federal gas tax, which is what the U.S. Chamber of Commerce recently called for.

Republicans are weighing whether to raise the federal gas tax. It's an idea they are prone to hate, but they may need it to pay for President Trump’s infrastructure investment plan.

The U.S. Chamber of Commerce recently called for the Trump administration and Congress to raise the gas tax by 25 cents per gallon to help pay for an infrastructure package, projecting it would generate more than $375 billion over a decade.

www.washingtonexaminer.com...

While a potential gas tax is being considered, other options are also being looked at. Some Republican lawmakers are looking at charging a tax on vehicle miles traveled (VMT), or "a tax on vehicle registration and a carbon tax."

Lawmakers and advocates say they could support other ideas for boosting long-term transportation revenue if Congress can’t pass a gas tax increase. Massie and Reed say one option would be to charge drivers for the amount they drive, in the form of a tax on vehicle miles traveled, or VMT.

Massie and Reed fear the gas tax soon will become obsolete as drivers turn away from gasoline and diesel-powered vehicles. “As new vehicles shift away from gas, we have to recognize the situation and find an alternative revenue source to feed into the infrastructure bank,” Reed said. “We can be creative and develop the next generation of user fees.” Reed also mentioned a tax on vehicle registration and a carbon tax as potential alternatives. Mortimer says the Chamber of Commerce has studied the future of the gas tax and believes it will be viable for another 10 years. He said Republicans are right to consider alternative taxes, but they should take immediate action now to raise the gas tax.

www.washingtonexaminer.com...

I know many Liberals may disagree, but I think president Trump cares about the middle class. He has mentioned that many middle class families cannot make ends meet. His Tax Cuts and Jobs Act reduces taxes, with the biggest benefits being seen by the middle class. I'm just concerned that a potential gas tax will hurt middle class and lower class individuals. Now with the stock market in decline, won't a potential gas tax hurt the economy further?

From 2004:

Macroeconomic analysis performed by the Center for Data Analysis at the Heritage Foundation, however, shows that increasing the gas tax would depress economic activity and the incomes of millions of Americans. It would also raise significantly less revenue than its proponents project.

many key economic indicators, including savings, disposable income, and GDP, would experience slower growth due to the tax increase.

www.heritage.org...

Sounds like a good time to invest in bicycles and hiking shoes.

More taxes?!

Dems should be happy!

What's the difference, gas tax is how much now?

Lower the cost by 30 cents and get a 5 cent decrease!

Lower the cost by Drill baby Drill!

Is 25c really that drastic?
Considering the price jump and drop in fuel over the past 10yrs... its not!!



I love these ''leaks'' by anonymous sources before policy is presented..
Usually its proven to be bunk...

Gas was nearly $4.00 per gallon in 2013. .25 won t be a problem.
But I thought there was already a tax for that included in the price.

energy.gov...

Gas price chart from 1929 to 2015.

Not Trumps idea to raise the tax. They know $3 a gallon is when people start really cutting back and at $4. most unnecessary driving stops. Vacations and RV industry dies. I live near the heart of the RV industry and they know exactly what gas prices do.

originally posted by: Sillyolme
Gas was nearly $4.00 per gallon in 2013. .25 won t be a problem.
But I thought there was already a tax for that included in the price.

energy.gov...

Gas price chart from 1929 to 2015.

It won't be a problem for people who do not drive for a living.

I work in the construction field. I can drive a considerable amount in a day, week, month, just so you can have your new stores, hospitals, and manufacturing plants.

Just another way to screw the working man/woman out if more money to squander on political pork projects.

$100 billion dollars divided by 50 is $2 billion per state. To that is if everybody gets to invest and receive a fair share. That means that a state has to invest $2 billion to receive the 2 billion.

Do you know of any states that can add 2 billion dollars worth of spending without raising more taxes?

Tax cut, what tax cut? They make you think you are saving but take it in other areas.

Just take my whole damn check, my kids don't need anything to survive. This move will only stagnate the economy and cause more job loss by trucking companies, and manufacturing companies cutting back to save on fuel expenditures.

I think Congress needs another raise while they are at it. (Sarcasm)

a reply to: Sillyolme

Well I remember people getting rid of their SUV's and 4WD trucks back in 2008, when gas was $4.00/gallon. Even I traded my 2002 Chevy Silverado 4WD for a smaller, 4 cyl. SUV. It was a problem back then and truck and SUV sales plummeted.

a reply to: liejunkie01

I agree brother!

a reply to: liejunkie01

I work in construction and yea we travel a lot and can't afford it

a reply to: shawmanfromny

And yet we kept on driving. Sales of compacts must have skyrocketed. So there's balance.

Guess I might have picked a bad year to drive to Yellowstone and the Grand Canyon.

Raise the federal gas tax? The one that has left many state department of transportation’s coffers in the red?? Good luck with that!

Might as well subsidize growing corn to produce transportation fuel!

Have to give them some credit, VMT tax sounds, well, not like a gas tax. Idiots.

This is where I have serious issues.

If government spent our money wisely then there wouldn't be an issue, but they don't.

a reply to: shawmanfromny

Welp there goes the tax beak, and other 'trickle down' your back cold water rivulets.

a reply to: BeefNoMeat

They really need to get ethanol out of our gas to.

Whaaaat? I thought Bush Jr Stimulus plan and Obama's shovel ready jobs for millions already fixed the infrastructure? Are you trying to tell me it's STILL BROKE?

originally posted by: DBCowboy
This is where I have serious issues.

If government spent our money wisely then there wouldn't be an issue, but they don't.

Correct, they hemorrhage it.

And while everyone is saying, "25 cents isn't so bad. Thats only a few extra bucks a fill-up".

Remember all consumable goods come on truck, that tax will be built into everything we buy.

Double whammy.

With the Gov's addiction to spending (reckless???) and due to the fact that they have neglected infrastructure so long, I don't see how they are going to get anything really accomplished unless they raise some taxes/create a new tax and or privatize things that need fixed like bridges, roads, etc.

Now that there is Eazy-Pass available that could be a method of charging people for using new roads/bridges.

What we need to worry about is the self driving vehicle issue and how that can effect trucking/transport and even personal cars. If there are less truck drivers, that is a lot less jobs, less income tax but the people making the $$ will be the corp's owning the trucks/taxi's and the auto makers and we all know how much these big industries pay in taxes in comparison.

a reply to: DigginFoTroof

What we need to worry about is the self driving vehicle issue and how that can effect trucking/transport and even personal cars.

The world is constantly changing, and man always changes with it.

Should fleets be autonomous, people will still have to keep up with them, dispatch... And I'm sure in the transition phase there will need to be a human in them should something to wrong.

Either way, it will shift jobs to something else, not eliminate all those jobs.