President Donald Trump will be calling for a 25-cent hike to the federal gas tax in order to pay for the White House infrastructure plan, according to multiple reports.
The effort could face opposition through Republicans, some of whom are reportedly worried about increasing the middle class’s tax burden so soon after cutting taxes, their only big legislative achievement under Trump.
The current federal levy will be 18.4 cents a gallon on retail gasoline as well as also 24.4 cents a gallon for diesel. The increase floated by the president would certainly presumably put the gasoline tax at 43.4 cents as well as also diesel tax at just under 50 cents.
Trump endorsed raising the gasoline tax by a quarter at a White House meeting with members of his administration as well as also Congress, two sources told Axios. Sen. Tom Carper, a Democrat through Delaware, told CNN Trump will be open to a 25-cent hike for both the diesel as well as also gasoline tax.
@KilloughCNN: Democratic Sen. Tom Carper says Trump was open to a one-time, 25 cent increase in gas as well as also diesel taxes today within the WH meeting w/ lawmakers. “He said he knew the idea was a difficult thing for legislators to support as well as also said which he would certainly…provide the political cover to do which.”
The White House said the idea would certainly not comment on Trump’s discussions in closed door meetings.
The president has communicated to staff which he will be open to raising the gas tax for weeks, ever since the U.S. Chamber of Commerce proposed the idea, CNBC can confirm.
The federal government has not raised the gas tax since 1993. Funds raised through the charge pay for road construction as well as also investments in mass transportation through the Highway Trust Fund.
within the roughly 25 years since the last hike, inflation has whittled down the buying power of dollars raised through the tax. Vehicles on the road have also become more fuel efficient, further diminishing the levy’s ability to fund highway repairs.