GOP bill would hike gas tax by 10 cents

The Hill ^ | 07/09/2015 | Keith Laing

[GIdget2004]

A Republican House member is introducing legislation to increase the federal gas tax by 10 cents-per-gallon to help pay for transportation projects across the nation.

The measure, sponsored by Rep. Tom Rice (R-S.C.), would offset the gas tax increase with a $133 income tax credit that would be offered to drivers to minimize the impact of higher prices at the pump.

Rice said in an interview with The Hill that his measure would not cost extra money but would give states "certainty" about the availability of federal transportation funding as a July 31 deadline for the expiration of the current spending looms.

"We have enough revenue already," he said. "Our measure moves money from the general fund into the Highway Trust Fund. It would raise the gas tax by about 10 cents-per-gallon, which would cost the average driver about $130 per year. It would be offset by a $133 income tax credit, so it's revenue-neutral."

Congress has been grappling since 2005 with a transportation funding shortfall that is estimated to be about $16 billion per year, and it has not passed a transportation bill that lasts longer than two years in that span.

The 18.4 cent-per-gallon federal gas tax has been the main source of transportation funding for decades, but it has not been increased since 1993, and more fuel-efficient cars have sapped its buying power.

The federal government typically spends about $50 billion per year on transportation projects, but the gas tax only brings in approximately $34 billion annually.

The non-partisan Congressional Budget Office has estimated it will take about $100 billion, in addition to the gas tax revenue, to pay for a six-year transportation funding bill.

[lowbridge]

“It would be offset by a $133 income tax credit, so it’s revenue-neutral.”

So whats the point of raising the tax to begin with?

[dila813]

My idea is to move the green incentives for electric and hybrid cars to the highway fund

[lowbridge]

“A Republican House member is introducing legislation to increase the federal gas tax by 10 cents-per-gallon”

Wonder what obama has on him to get him to introduce this.

[EternalVigilance]

The Republicans in our state already gave us a 45% gas tax increase this year.

With Republicans like this, who needs Democrats?

[central_va]

The credit will only apply to those making less than 20k/yr

[bert]

I would prefer an excise tax of say $5,000 on all electric and $3,500 on hybrids at the dedicated to roads and bridges.

[lowbridge]

Then hes lying about it being “revenue neutral”.

[central_va]

it starts revenue neutral the the min inc req goes down every year.

[Protect the Bill of Rights]

If they think we can afford a $.10 per gallon tax hike, they must think the economy is good, wages have risen and 40 work week jobs are so plentiful corporations are begging for new hires.

IOW, they must believe Obama fixed the economy.

[KarlInOhio]

Rice said in an interview with The Hill that his measure would not cost extra money but would give states "certainty" about the availability of federal transportation funding 

When did states lose the power to tax their own gasoline for their own road projects? Money doesn't become holy when baptized in the waters of the Potomac... it just leads to corrupt budget busting projects like the Big Dig and the Bridge to Nowhere.

[Jack Hammer]

Let’s see... was it the Democans who are the tax-and-spend party, or is it the Republicrats?

It’s so difficult to remember anymore.

[kindred]

The worthless rinos are as bad and equalally arrogant as the hateful communist tax and spend democrats nowdays. As one of America’s founding fathers stated, “ The power to tax is the power to destroy!” Unfortunately, their are too many brainwashed and ignorant “idgits” in America now days.

[Norm Lenhart]

Shame on you EV. It’s a lesser evil! We have to elect Republicans that tax like Democrats and act lie Democrats no matter what?

Obama thanks you. Hillary! thanks you, David Axelrod thanks you (when he’s not the keynote speaker at s Mitt Romney GOP gathering), Valerie Jarret thanks you and you hate America and puppies.

(Did I miss any?)

[Bulwyf]

I’m starting to notice that nobody ever introduces a bill to reduce taxes. It’s always going in one direction.

[kindred]

[With Republicans like this, who needs Democrats?]

Amen to that.

[Savage Beast]

The hunger of the politicians for money is insatiable.

[Norm Lenhart]

Yea well you know some people here tried explaining that to people for the last couple elections but some people new better and demanded we send lesser evils to DC to work with Barry.

I mean Mitch and Jonbon campaigned on that very thing. So obviously some people knew better than us evil purists.

[sphinx]

We have an infrastructure backlog and user fees are a good way to pay for the needed investments. The problem arises when it comes to splitting the pot among rural areas, suburbs, and central cities, all with different priorities, and across different forms of transportation. The only absolutely fair way to make these decisions is to put me in charge, as I am the only absolutely fair person I know. YMMV.

What you see usually depends on where you sleep. I live in the city and am generally not in sympathy with the suburban desire to smash new roads through settled neighborhoods to shave a few minutes off their commutes.

[Straight8]

“Revenue neutral”?? After D.C. gets their hands on it? Half of it will disappear.
Also, the cost of goods and services will rise with the cost of fuel.