Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Gas-Tax Indexing to Fund Infrastructure Gains Senate Momentum

BrexitJun 10, 2021 18:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. Mitt Romney 2/2

(Bloomberg) -- Republican and Democratic senators said Thursday they were open to considering the first change in the national gasoline tax since 1993 to help fund a bipartisan infrastructure spending package they plan to propose to President Joe Biden.

Indexing the gasoline tax -- currently 18.4 cents-per-gallon -- to a measure of inflation has been discussed by a bipartisan group of senators working on a compromise plan, according to Mitt Romney, a Utah Republican who’s taken a leading role in those talks.

“It keeps it at the same value that it has today,” Romney said of indexing the tax.

Disagreement over how to pay for the biggest infrastructure bill in decades contributed to the breakdown in Biden’s direct talks with GOP senators led by Shelley Moore Capito earlier this week. The Focus of bipartisan negotiations has now shifted to the group including Romney, though some Democrats are eager to get moving on a go-it-alone strategy.

Dick Durbin, the No. 2 Senate Democrat, said Thursday he’s in favor of indexing the gas tax. Still, it’s unclear whether the White House would endorse such a move. The administration has opposed user fees as a mechanism for funding, saying it would put undue burdens on lower-income Americans. Biden has pitched tax hikes on companies and the wealthy, which the GOP rules out.

Spending Figure

“I’ll take a look at it,” Jon Tester, a Montana Democrat who’s a participant in the talks, said with regard to indexing the tax. “The trust fund is in terrible shape,” he said. Gas tax revenues go to a dedicated so-called trust fund that’s used to pay for roadway and transit costs.

Romney separately said that the bipartisan group has reached an agreement on a top-line figure for the infrastructure package, without specifying to reporters what that number is.

Biden’s most recent figure was $1.7 trillion in the talks with Capito, down from an initial $2.25 trillion for his “American Jobs Plan.” The Capito group had proposed $257 billion in net new spending above amounts that Congress was expected to approve for coming years.

Senate Finance Chair Ron Wyden, who’s not been engaged in the bipartisan infrastructure talks, said he would look at any gasoline tax indexing proposal before commenting. He noted that Biden has a “reservation about this as a regressive tax” and highlighted the Democratic view that corporations are underpaying taxes now.

‘Better Chance’

“The question is how is the money to be raised and is it going to be done in a fair way,” Wyden said.

The last gasoline levy increase came under Bill Clinton’s administration, in a broad 1993 package of tax hikes aimed at reducing budget deficits at the time. It squeaked through without Republican votes.

Chuck Grassley, a veteran Iowa Republican, said Thursday about indexing the levy, “It’s better than increasing the gas tax and it has a better chance of getting done.” He also that if that had been done in the early 1990s “we wouldn’t be in the situation we are in now.”

©2021 Bloomberg L.P.

Gas-Tax Indexing to Fund Infrastructure Gains Senate Momentum
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email