Senators propose 12-cent per gal gas tax increase

Gas Tax 002JOAN LOWY, Associated Press

WASHINGTON (AP) — Two senators are proposing to raise federal gasoline and diesel taxes for the first time in more than two decades as Congress struggles with how to pay for highway and transit programs.

Senators Chris Murphy, a Connecticut Democrat, and Bob Corker, a Tennessee Republican, pitched their plan Wednesday as a bipartisan solution to replenish the federal Highway Trust Fund. That fund is forecast to go broke in late August.

The plan would raise the 18.4 cents a gallon federal gas tax and 24.4 cents a gallon diesel tax by 12 cents each over the next two years, and then index the taxes to keep pace with inflation.

The plan calls for offsetting the tax increases with other taxes cuts, possibly including extending federal tax breaks that expired this year.

  • Captian Cave Man

    Clinton introduced the gas tax back in the 1990’s when gas was reasonable and the hit was not very hard. We are completely getting screwed by the oil companies, wall street and their fears in the middle east, a current gas tax is still in place and since we are forced to buy gas to get things done your trust fund will not go broke. So two senators out of how many want to propose this addition to the current gas tax to screw us even more and then to be allowed to readjust after two years to continue to raise the gas tax. To offset the pain at the pump they will extend expired federal tax breaks. Once food goes past the expiration date the stores can’t mark through it and write in a new expiration date. Strange how this can be done with taxes that expire. So apparently the sunset clause does not exist on taxes, very interesting. Exactly what taxes are they not going to resurrect to offset this pain. So these two senators don’t like their jobs I gather by doing this. Colorado, Washington, we should follow their lead.

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