Tags: tax | gasoline | energy | donald trump

Analyst: Trump's Gas Levy to Take Back 60% of Tax Cut for Individuals

Analyst: Trump's Gas Levy to Take Back 60% of Tax Cut for Individuals

Thursday, 15 February 2018 04:06 PM

President Donald Trump this week was reported to be open to a 25-cent-per-gallon tax hike on gasoline to help pay for infrastructure projects – but that would take away a big chunk of the tax cuts on personal income, a study said.

Strategas Research said the higher tax, along with expected increases in fuel costs, would cost consumers $71 billion, or 60 percent of the expected $120 billion gain from tax cuts, CNBC reported. For an average family, a 12-gallon fill-up would cost $3 more with the new tax.

Daniel Clifton, Strategas' head of policy research, said higher gasoline prices would also be nine times bigger than the estimated $4 billion workers are receiving from employers because of the corporate tax cut.

The gasoline tax is now 18.4 cents a gallon and hasn’t been raised since 1993 when Bill Clinton was president. Gary Cohn, Trump’s economic advisor, has been discussing a gasoline tax raise.

Government data already show an increase in gasoline prices of 20 cents a gallon this year, costing consumers about $34 billion, Clifton said.

The average national price of gasoline is about $2.55 a gallon, down from $2.60 a week ago, but well above last year's $2.28 a gallon, according to the AAA.

Sen. Tom Carper of Delaware said Trump told lawmakers in a White House meeting that he would be willing to provide leadership on gas tax hike, according to the Associated Press.

"To my surprise, President Trump, today in our meeting, offered his support for raising the gas and diesel tax by 25 cents a gallon and dedicating that money to improve our roads, highways, and bridges," Carper, a Democrat who has advocated for the increase, said in a statement.

The White House proposal doesn’t indicate what the administration will do with the Highway Trust Fund, which finances most highway and transit projects through the fuel taxes. The trust fund is forecast to go broke in 2021.

Groups like the U.S. Chamber of Commerce have called for a 25-cent, phased-in increase in the federal gas tax to bolster the nation's highway trust fund.

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President Donald Trump this week was reported to be open to a 25-cent-per-gallon tax hike on gasoline to help pay for infrastructure projects - but that would take away a big chunk of the tax cuts on personal income, a study said.Strategas Research said the higher tax,...
tax, gasoline, energy, donald trump
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2018-06-15
Thursday, 15 February 2018 04:06 PM
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