Investing.com – President Trump has yet to outline how he’ll pay for his $1.5 trillion dollar infrastructure plan, but given his support for a gasoline tax increase in the past, it may be included as a revenue source.
Americans currently pay far less in gasoline taxes than consumers in other countries.
The federal gasoline tax, which was last increased in 1993, stands at 18.4 cents per gallon of fuel. When you add in an average state tax of 35 cents, the total is about 53 cents per gallon.
The average tax for the 34 countries in the OECD is $2.62 per gallon. Only Mexico has a lower tax rate than the U.S.
The Chamber of Commerce is pushing for a 25-cent increase, spread evenly over five years.
Republicans in Congress have already expressed their opposition to any increase, saying consumers will protest.
Protest they might, but 39 states, including five last year, have successfully raised gasoline taxes since the last federal increase 25 years ago.
And with gasoline prices far below their 2012 peak, it may be a less painful addition to the cost of driving than in the past.
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Source: Investing.com
