Gas Tax for Infrastructure Sparks Fears of Political Backlash...

Source: https://finance.yahoo.com/news/gas-tax-infrastructure-sparks-fears-080000147.html
Published: May 1, 2019
Author: staff
Post Date: 2019-05-01 12:08:56 by Horse
Views: 406

Democrats and Republicans are quick to talk up a bipartisan infrastructure deal. Yet neither party wants to take the political risk of paying for it when all options are toxic -- including the obvious choice of raising the national gas tax.

Increasing the gas tax is so politically fraught that it hasn’t been touched in 26 years and it didn’t even come up at a meeting at the White House Tuesday between President Donald Trump, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer to discuss an infrastructure plan.

While they agreed broadly on the need to upgrade roads, bridges and airports, they put off for three weeks the tougher conversation about coming up with ways to fund an estimated $2 trillion in public works.

Taxes on fuel in the U.S. are among the lowest in the developed world, at 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, and infrastructure advocates see raising the levies for the first time since 1993 as the best short-term option to generate needed revenue.

Still, a measure that would disproportionately affect poor and rural drivers raises opposition at all levels of the political spectrum. It’s also created strange bedfellows -- aligning members of the conservative House Freedom Caucus, born from the Tea Party movement, and progressives such as Senator Elizabeth Warren of Massachusetts, a Democratic presidential candidate.

“Working people who have got to get to their job, get their kid to a medical appointment, shouldn’t get hit again when multinationals are enjoying their big tax breaks and causing much of the wear and tear to the road,’’ said Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee, who was at the meeting.

Roll-Back Cuts

Some Democrats, including Wyden and Schumer, have said they’d only consider increasing the gas tax if it’s paired with a roll-back of tax cuts that benefited the rich in the 2017 tax overhaul. The 2018 Senate Democratic infrastructure plan called for raising taxes on top earners and corporations.

Even though Trump campaigned on a promise to invest at least $1 trillion in infrastructure, the plan he released last year included only $200 billion over a decade -- mostly in incentives to spur investments by states, localities and the private sector.

Democrats said after their meeting with Trump on Tuesday that he offered no plan for financing infrastructure projects. They said they won’t make any offers and will wait for the White House to make its proposal in three weeks. Democrats said Trump indicated he’s soured on a public-private approach.

The White House statement after the meeting made no mention of an amount an amount or where the money would come from.

While Trump has said he’s eager to work with Congress on infrastructure, Democrats say Republicans won’t go along unless the president publicly endorses a plan -- especially if it includes a tax increase.

Closed-Door Meeting

Lawmakers who attended a closed-door meeting with Trump a year ago said he told them then that he’d support a 25-cent-per-gallon increase in the gas tax and take the political heat. But Republican congressional leaders were opposed, and Trump never backed the idea publicly.

Now Trump’s signaling that he’s unlikely to support a gas-tax increase. In a tweet last Friday, he said the fuel tax in California “is causing big problems on pricing for that state” and “speak to your governor about reducing.” California approved a 12-cent-per-gallon increase in 2017 to help pay for road and bridge projects, and voters defeated a Republican-led ballot measure to repeal it last November.

Asked by reporters on Tuesday whether Trump would raise the federal gas tax to help pay for an infrastructure package, White House adviser Kellyanne Conway said “this president is the president who lowers taxes.”

Michael Ireland, the president and chief executive officer of the Portland Cement Association, said, “They’re all afraid to go first.”

“The truth is only the president can provide cover for his caucus,” added Ireland, whose group backs a gas-tax increase. ”Likewise, only the speaker and the Senate minority leader can provide cover for their members.”

‘D-Plus Level’

Advocacy groups as diverse as the U.S. Chamber of Commerce, the AFL-CIO, the American Trucking Associations and others are advocating raising federal fuel taxes as the only realistic way in the short term to generate the funding needed to address upgrades to public works from a “D-plus’’ level that the American Society of Engineers has estimated would cost $2 trillion.

Story continues.


Poster Comment:

Maybe if we hadn't spent all that money on Israel, wars for Israel and allowed the people who own our government steal $1 trillion from spending which we are not allowed to audit.

Post Comment   Private Reply

#1: GreyLmist    To: Horse (#0)

Stop all foreign aid and all unnecessary spending extravagances. Gas prices just jumped approximately 30 cents a gallon in a few days for no discernible reasons other than political games and price gouging for profit. That cost is in addition to State fuel taxes, which were recently passed, and a Federal fuel tax would be in addition to those costs -- all of which increases the cost of heating and most other household expenses. Businesses just raise their prices to cover increases in their expenses but workers are expected to bear their losses from increased market prices.

Politicians have no plans except to crash the economy before the next election and impoverish the working poor until they are made homeless, then left to perish without shelter from freezing cold winters; while illegal alien invaders are provided with shelter, jobs and much more at taxpayer expense as "humanitarian aid". So, politicians should have to reduce their own pay to near Minimum Wage level, which skilled workers are kept at while their purchasing power continually decreases and prices skyrocket.

When politicians and "economists" talk about "what's good for the Economy" and "infrastructure", they mean:

1. Higher taxes and prices for "consumers" so that they lose money and assets

2. More fiat money being printed for businesses to "invest" as a way to make more money for banks and themselves by keeping as much as possible from reaching their workers and others (who will be charged to cover all business costs and even the interest costs on those "business loans"). The biggest "jackpot winners" of that so-called "Free Market" scheme will get to be listed among the "Fortune 500".

The Economy has been arranged by D.C. to fail Americans who can scarcely afford as it is to get from one paycheck to the next without resorting to a "paycheck advance loan" debt-contract with exorbitant fees and interest rates (if they'll even have a paycheck to pawn so), which is yet another price gouging "big business" racket.


Most States Have Raised Gas Taxes in Recent Years – ITEP [Institute on Taxation and Economic Policy - Includes Laws Enacted between 2013 and 2019 ; This pro-tax shill site's list is current as of April 4, 2019.]

Top Five Reasons Not to Raise the Gas Tax | Americans for Tax Reform

GreyLmist posted on 2019-05-02 21:26:26   Reply   Private Reply