Bipartisan Group Backs Gas-Tax Increase to Fund Infrastructure
April 23 2021 - 11:03AM
Dow Jones News
By Andrew Duehren
WASHINGTON -- A bipartisan group of House lawmakers endorsed
raising the gasoline tax to pay for infrastructure spending,
lending support to a measure that both Republican and Democratic
proposals have avoided in the debate about how to cover the cost of
an infrastructure package.
The group of 58 lawmakers, dubbed the Problem Solvers Caucus,
proposed indexing gas and diesel taxes to inflation, highway
construction costs, fuel-economy standards, or some combination of
the three in a report on infrastructure released Friday. The report
lays out other possible fee increases, including a vehicle-miles
traveled tax that would collect revenue from electric vehicles.
Congress hasn't raised the gas tax, which stands at 18.4 cents a
gallon, since 1993.
While the bipartisan group doesn't lay out specific funding
levels, it does call for federal investments in rail, water
infrastructure, and broadband. They propose easing regulations on
approving new projects and incentivizing more private investment in
infrastructure, among other measures.
The report comes as President Biden seeks to advance his $2.3
trillion infrastructure plan on Capitol Hill. A group of Senate
Republicans outlined a $568 billion proposal Thursday, advancing an
alternative to Mr. Biden's plan, which GOP lawmakers have
criticized as too broad.
"We cannot afford four more years of crumbling bridges, roads,
and tunnels, lead-filled pipes, and failed transportation, which is
why the Problem Solvers Caucus is putting partisanship aside to
find a solution that brings both parties to the table," Rep. Josh
Gottheimer (D., N.J.), the co-chair of the group, said in a
statement.
The White House has repeatedly said it is opposed to raising
user fees like the gas tax to pay for infrastructure, arguing that
it would disproportionately impact lower-income Americans, instead
proposing a series of corporate tax increases to cover the cost of
the package. The Senate Republicans said their plan wouldn't
include an increase in the gas tax, calling for using existing
federal dollars and other user fees to pay for the plan.
Members of the Problem Solvers Caucus recently met with top
White House officials to discuss infrastructure and other
topics.
(END) Dow Jones Newswires
April 23, 2021 10:48 ET (14:48 GMT)
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