President Biden Opposes Raising the Federal Gasoline Tax
Last Friday, U.S. Transportation Secretary Buttigieg said that President Biden opposes raising the federal gasoline tax because it would violate his pledge to not raise taxes on middle-class Americans. Per Secretary Buttigieg, “the President’s made a commitment that this administration will not raise taxes on people making less than $400,000 a year and so that rules out approaches like the old fashioned gas tax.” No doubt, Congress and the Department of Transportation is gearing up for a debate about rebuilding the nation’s roads and other infrastructure, one that is likely to center on how to pay for a Biden administration proposal that is expected to cost as much as $2 trillion. Receipts from the gas tax have been falling for years as cars become more fuel efficient, a problem the Biden administration’s push for electric cars is likely to accelerate. The gas tax, currently 18.4 cents per gallon, has not been increased by lawmakers since 1993. Congress has relied on transfers from other areas of the budget to close a gap in highway funding of as much as $16 billion a year.