A 12-cent hike in federal gasoline tax?

[Bob Of Burleson]

A bump at the pump?
Senators propose
a 12-cent hike
in federal gas tax

By Ashley Halsey III
The Washington Post

A bipartisan Senate proposal emerged Wednesday to rescue beleaguered federal transportation funding by raising the tax on gasoline by 12 cents a gallon.

The proposal to hike the 18.4 cent federal tax for the first time since 1993 came from Sens. Chris Murphy (D-Conn.) and Bob Corker (R-Tenn.) and won quick endorsement from an array of advocates ranging from road builders to AAA.

In addition to increasing the tax by six cents in each of the next two years, the senators want the rate indexed to inflation. Failure to keep pace with inflation over the past 20 years, along with steadily increasing fuel economy, have caused the Federal Highway Trust Fund that receives the money to sink to a dangerous level.

The Transportation Department projected this week that the fund would no longer be able to meet its obligations by mid-summer. The Obama administration, citing a fragile economic recovery, has been reluctant to endorse a gas tax increase. Members of Congress facing midterm elections have preferred to look to other sources.

“For too long, Congress has shied away from taking serious action to update our country’s aging infrastructure,” Murphy said. “We’re currently facing a transportation crisis that will only get worse if we don’t take bold action to fund the Highway Trust Fund. Raising the gas tax isn’t an easy choice, but we’re not elected to make easy decisions.”

The White House has heard some echo from Capitol Hill for its plan to fund transportation through corporate tax reform, but the notion has little momentum and implementation would take too long to meet the immediate need.

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[BigTex]

Won't that cancel out Obama's increase in the minimum wage?

[planosteve]

I said last month it would be raised 20 cents. I doubt 12 cents will even come close to what inflation has been since the last raise.

[Dennis]

Not a problem if all of it was used where it was supposed to go. But some will go to Iraq, some will go to our new house guest along the border and so on....

[Grassman]

As a business that buys a lot of gas, damn it....

[GFB]

How about eliminating the Federal gas tax you dipwads!

[scarlett~nc]

wonder if they will raise it more on diesel ..to hurt business more . Our trucks are all diesel and the price is already sky high, course you know what happens , raise it then it gets passed on to consumers ..consumers are always the looser when it comes to government.

[John In Austin]

The federal government doesn't need any more money. The size of government needs to be cut by 90%. Anyone standing up and supporting this supports a bigger government and needs to be shot.

[GFB]

The federal government doesn't need any more money. The size of government needs to be cut by 90%. Anyone standing up and supporting this supports a bigger government and needs to be shot.

Pick me!

Pick me!

[Houston]

wonder if they will raise it more on diesel ..to hurt business more . Our trucks are all diesel and the price is already sky high, course you know what happens , raise it then it gets passed on to consumers ..consumers are always the looser when it comes to government.

and the Washington dumb dumbs have not figured corporations do not pay taxes. the consumer pays. yes it gets passed on but sometimes
it is harder on the small businesses.