Biden objects to raising gas tax to pay for infrastructure
Source: AP
The White House made clear Friday that President Joe Biden was opposed to letting the federal gasoline tax rise at the rate of inflation to help pay for an infrastructure package that a bipartisan group of 21 senators is trying to craft.
The gas tax increase was part of an early package that called for $579 billion in new spending on roads, bridges, rail and public transit. Its unclear if it will make the final cut and the White House seems intent on making sure it doesnt.
The President has been clear throughout these negotiations: He is adamantly opposed to raising taxes on people making less than $400,000 a year, White House spokesman Andrew Bates said. After the extraordinarily hard times that ordinary Americans endured in 2020 job losses, shrinking incomes, squeezed budgets he is simply not going to allow Congress to raise taxes on those who suffered the most.
The federal gas tax stands at 18.4 cents a gallon and has not increased since 1993. It helps pay for highways and mass transit programs around the country. Congress has traditionally relied on the user-pay principle to pay for road and bridge work, but is increasingly relying on general funds to accomplish that task. Lawmakers from both parties are wary of attack ads accusing them of supporting a hike in gas prices.
Read more: https://apnews.com/article/joe-biden-business-government-and-politics-628666300e1ed0c9ad11c6eb8c608c4f
Oregon Sen. Ron Wyden, the Democratic chairman of the Senate Finance Committee, said that indexing the gas tax to inflation was a nonstarter for him.
Its another hit on working people, Wyden said.
Sen. Sherrod Brown, D-Ohio, said a gas tax hike is a Republican thing.
C Moon
(12,212 posts)WHITT
(2,868 posts)there's an infrastructure bill enacted, the Dems need to push the messaging hard, that the Repubs wanted to raise your gas taxes, but we stopped them, and keep up that messaging all the way through the '22 elections.
XanaDUer2
(10,626 posts)we need better messaging.
PoliticAverse
(26,366 posts)azureblue
(2,146 posts)NT
DanieRains
(4,619 posts)Bingo.
DallasNE
(7,402 posts)Are the two most regressive taxes out there. Tax loopholes also make the income tax regressive but taka away the loopholes and the income tax becomes progressive. I would work on the massive loopholes in the income tax that allow the most wealthy pay at a rate of less than 1%.
KPN
(15,641 posts)getting rid of loopholes that allow the wealthy to avoid taxes.
BootinUp
(47,135 posts)mucifer
(23,521 posts)dsc
(52,155 posts)honestly, our gas prices are too low. But to do that to the exclusion of raising taxes on corporations and the rich would be insane. And it should be noted I do a decent amount of driving so my ox would be getting gored.
Marrah_Goodman
(1,586 posts)Higher prices would leave me even more isolated. I don't live somewhere that there is public transportation.
KPN
(15,641 posts)on middle and lower classes until the wealthy have paid their due and their due is way more than a lot.
Marrah_Goodman
(1,586 posts)KPN
(15,641 posts)maxsolomon
(33,265 posts)Gas taxes are significantly higher in Japan, Canada and Europe. 18.4 cents/gallon since 1993. 28 years. Gasoline consumption is killing the planet. Indexing them to inflation is reasonable.
However, the GOP is trying to get Dems to swallow a poison pill for 2022.
So we see the limits of the debate.
KPN
(15,641 posts)alternative energy transportation modes are affordable for all. I get the argument, but it misses the cost to those who have the least.
GB_RN
(2,346 posts)And they'll just pass on the increase to us via higher prices at the pump to offset their taxes. I mean, they can't cut their profits, nor will they: Gotta maximize shareholder value, after all.
(I get your point, though.)
WHITT
(2,868 posts)Among many other reasons, there are two big ones.
1) Generally speaking, we have three levels of taxation, national, state, and local, comprised of either county or municipal. With the countries identified, generally speaking, there are only two levels of taxation, either national and regional or national and local.
2) More importantly, the countries identified may have higher taxation, but also have national healthcare, so their citizenry have no healthcare premiums, deductibles, or co-pays, so their net out-of-pocket costs are actually lower.
maxsolomon
(33,265 posts)Gas taxes are used to fund roads, but also to mitigate the negative effects of it's use: funding pubic transportation infrastructure, for instance.
I know the impact falls disproportionately, but I also see it as a Sin Tax, like that on liquor. The expense discourages use.
It's not even a reasonable comparison. Apples and alligators.
maxsolomon
(33,265 posts)Burning petroleum is killing the planet.
WHITT
(2,868 posts)and there are far less regressive paths to accomplish that goal.
Fritz Walter
(4,291 posts)The City of Jacksonville -- which has one of the largest geographic metropolitan areas in the country -- just approved a $0.06 increase in gas tax specifically for infrastructure improvements. This goes into effect next year, but the money is already being spent now. Replacing septic tanks is one of the key projects.
This weekend, the price at the pump for regular gas is still hovering around $3/gallon. The reason? "Supply and demand," say the oil companies. People are returning to work or seeking jobs, and this is a kick in the teeth to those already struggling to make ends meet.
President Biden's absolutely right about this. Stand your ground, sir!
pecosbob
(7,534 posts)Like it used to be. Make those that wear the roads out the most pay the most (Amazon, Kroger, Walmart)