‘Would increase taxes on consumers by $37 billion next year…’
(Ana Michaels, Liberty Headlines) Grover Norquist, president of the influential Americans For Tax Reform, sent a letter to Congress on Wednesday that urged members not to increase the gas tax.
Instead Norquist advocates for cuts to wasteful spending in order to pay for President Trump’s proposed infrastructure initiative.
The federal gas tax currently stands at 18.4 cents per gallon.
In the letter, Norquist gave examples of areas to look at cuts, citing an analysis of a recent report by the Government Accountability Office (GAO), which found that more half of the Highway Trust Fund spending went to non-road-related projects.
The same report showed that money from the fund has been used on things like squirrel sanctuaries and driving simulators.
The idea has been floated to increase the gas tax to as much as 25 cents per gallon.
Some lawmakers said the president endorsed the idea last week, according to Politico.
The last time the gas tax was increased was in 1993.
“A gas tax increase of $0.25 per gallon would increase taxes on consumers by $37 billion next year,” Norquist warned. “If combined with an anticipated $0.20 per gallon increase from rising gasoline prices, consumers will pay $71 billion more for gasoline next year, wiping out 60 percent of the $120-billion in tax cuts contained in the Tax Cuts and Jobs Act.”
Norquist cited the savings the average family was now receiving under the tax reform law passed in December.
“Raising the gas tax will directly undermine these gains and would predominantly fall on middle and low-income American families,” wrote Norquist.