Most Americans are not aware of the massive tax increase coming soon. As Chris Choco. President of Club for Growth said on Wednesday, the bipartisan proposal to raise the federal gas tax to pay for road and transit programs is "bad policy" and "terribly anti-American."
What is he talking about? It’s a proposed increase of federal taxes on gas and diesel fuel by 12 cents a gallon over the next two years to cover a projected shortfall in the Highway Transit Fund. Chocola says, "This is a $164 billion tax increase, plain and simple. It’s not an example of political courage to avoid reforming a broken system. Rather than perpetuate this failed system, Congress should devolve highway funding to the states and let them fund their own infrastructure needs."
The “silent tax” has now become an election topic throughout the nation. The tax was originally proposed by Republican Sen. Bob Corker of Tennessee and Democrat Chris Murphy of Connecticut. The current gas tax is 18.4 cents per gallon, and the diesel tax is 24.4 cents a gallon.
Their proposal would put increases after the two years on “auto pilot.” The taxes would be indexed to keep pace with inflation. Their antidote for this sort of highway robbery is to offset the tax increases with other tax cuts. That could be done by permanently extending six federal tax breaks that expired this year.
Washington seems to find money as the cure for whatever troubles a federal program. In this case, the Highway Trust Fund is expected to go broke by late August. Meanwhile, gas prices for consumers has risen over two and a half dollars since President Obama took office in 2009.
Chocola’s disgust with the Fed’s irresponsibility of tax dollars is quite apparent. "Instead of standing up to the special interests who feast on the chronically bankrupt Highway Trust Fund year after year, Sen. Corker and Sen. Murphy have essentially decided that throwing more money into a black hole is a good path forward. "It’s not."
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