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federal gas tax incease

  • Link to article here.

    Trump floats gas tax increase after cold reception to privatized toll roads
    By Terri Hall
    May 5, 2017

    It’s tough being a change-agent. Newly minted President Donald Trump came into office with high hopes of a major infrastructure overhaul. With the nation’s crumbling bridges, pothole stricken roads, and millions of commuters choking in urban congestion, Trump had a big plan to harness the private sector through public private partnerships (P3s) to address congestion by adding toll lanes. The problem is those privatized toll lanes grant private, usually foreign, entities monopolies over vital public highways where the companies are given the exclusive right to extract the highest possible tolls for 50-99 years.

    With the pushback to P3s coming fast and furious from working class families to truckers, Trump has begun to change his tack. After meeting with members of the trucking industry this week, Trump has floated the idea of a federal gas tax increase to raise the revenue necessary for the big infrastructure fix. Truckers prefer a gas tax increase to tolls.

    Here’s the back story. The National Highway Trust Fund, which is funded with a federal gasoline tax of 18.4 cents per gallon, has teetered on the edge of bankruptcy for over a decade while the gas tax has remained unchanged since 1993. Inflation has diminished its buying power over the last 24 years, and members of congress have been reluctant to raise it. Under President George W. Bush, many Republicans pushed road privatization and implementing toll ‘managed’ lanes as the means to finance road projects as perpetual road funding shortfalls plagued the highway system.

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