GOP leaders oppose Trumpês openness to gas tax increase
Republican members of Congress threw cold water on President Trumpês willingness to consider an increase in the gas tax, according to The Hill. As reported in last weekês WANADA Bulletin, Trump said he was open to the gas tax hike to help pay for infrastructure repair.
It would be a simple way to pay for an ambitious infrastructure program. The federal gas tax, currently 18.4 cents per gallon, has not been raised in more than 20 years. A higher gas tax could also shore up the Highway Trust Fund, which the Congressional Budget Office estimates will run out of money in the next decade. But some Republicans are wary of any increase in taxes.
Republicans also object that the gas tax is regressive and is not sustainable over the long term because of the increasing fuel efficiency of cars.
Trump said in an interview with The Economist that he may align his tax and infrastructure plans because Democrats would be enticed by infrastructure funding. So far he has given only a very broad outline of his tax plan.
Trump did reveal more of his preferences in The Economist interview, saying that tax cuts which he believes will pay for themselves through economic growth are more important than reducing the deficit. He dismissed the idea of a border adjustment tax, favored by House Speaker Paul Ryan as a way to pay for corporate tax cuts, but strongly opposed by the auto industry, among others.Download Bulletin PDF