Trump agrees to gasoline tax hike verbally
Donald Trump, when asked to explain the budget for his new 200bn dollar infrastructure plan, has verbally agreed to a proposal, which would hike up the gas taxes in the USA by 25 cents. This move is surprising on various levels.
Increasing gasoline tax in the U.S. under the Trump administration is not only surprising considering his previous comments and attitude regarding renewable energy and the protection of what he considers traditional American values, but also because no president has dared touch the 18.4 cent-per-gallon tax on gasoline since 1993. The federal diesel tax stands at 18.4 cents per gallon and would be subject to the same regulation.
Whether this will take effect in policy, is another question altogether through. The White House has not confirmed the statement and, according to Reuters, some members of congress have signalled support for the tax hike, but that “Trump would need to provide cover to win approval for the politically risky move”. Other republicans have already announced their opposition and voices in congress do not sound confident that the legislation stands any chance of actually passing.
Another factor to consider is the impact this tax hike would make on the tax cuts the Trump administration has enacted. According to a CNBC figure, the move would wipe out 60% of the individual benefits from the tax plan, and cost consumers around 34 billion dollars.
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