Breaking News Bar
updated: 6/18/2014 11:59 AM

Senators propose 12-cent gas tax increase

hello
Success - Article sent! close
  • Sen. Chris Murphy, D-Conn., partnered with Sen. Bob Corker, a R-Tenn, to pitch a plan to raise federal gasoline and diesel taxes for the first time in more than two decades to replenish the federal Highway Trust Fund. That fund is forecast to go broke in late August.

      Sen. Chris Murphy, D-Conn., partnered with Sen. Bob Corker, a R-Tenn, to pitch a plan to raise federal gasoline and diesel taxes for the first time in more than two decades to replenish the federal Highway Trust Fund. That fund is forecast to go broke in late August.
    Associated Press file photo

 
Associated Press

WASHINGTON -- Two senators unveiled a bipartisan plan Wednesday to raise federal gasoline and diesel taxes for the first time in more than two decades, pitching the proposal as a solution to Congress' struggle to pay for highway and transit programs.

The plan offered by Sens. Chris Murphy, D-Conn., and Bob Corker, R-Tenn., 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.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

The plan also calls for offsetting the tax increases with other taxes cuts. It suggests that could be done by permanently extending about 50 federal tax breaks that expired this year, but the senators indicated they would be open to other suggestions for offsets.

The federal Highway Trust Fund that pays for highway and transit aid is forecast to go broke by late August. Revenue from gas taxes and other transportation user fees that go into the fund haven't kept pace with federal aid promised to states. People are driving less per capita and cars are more fuel efficient, keeping revenues fairly flat. But nation's infrastructure is aging, creating greater demand for new and rebuilt roads and bridges. At the same time, the cost of construction has increased.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here