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Tax and Spend: Trump Proposes 25-Cent Gas Tax, My Alternative Plan

President Trump is proposing a 25 cent gas tax to pay for his infrastructure plan. I have a better idea.

President Donald Trump signaled support for a 25-cent gas tax increase to help pay for infrastructure at a meeting with lawmakers on Wednesday, a source in the room told POLITICO.

Trump's support, though not confirmed by the White House, represents a stark departure from recent administrations and congressional leaders that have tip-toed around the issue because raising the gas tax is considered politically dangerous.

It's also a surprising turn from Trump, considering that most believed the best chance to hike the gas tax with the least amount of political pain was as part of the tax overhaul, H.R. 1 (115), whose ship has now sailed — and also because the splashy infrastructure plan the administration rolled out two days ago contained no mention of such a thing.

Trump told members he would lead on promoting a 25-cent hike to the federal levy, the source said. A second source familiar with the meeting said Trump backed the concept.

The 18.4 cents-per-gallon federal gas tax has not been raised since 1993. A 25-cent hike phased in over five years would generate an additional $375 billion over the next 10 years, according to the U.S. Chamber of Commerce.

Mish Alternative

  1. We stop the wars. Bring our troops home from Europe, Japan, Afghanistan and the Mideast. Everywhere actually.
  2. Trump proposed $686 billion for defense. I propose we slash our military spending by 50%. This would still leave the US with more military spending than any other country. That would give us an extra $343 billion a year.
  3. US Infrastructure needs repair, but that repair needs to be done at a reasonable price. To achieve that end, we need to scrap Davis Bacon and all prevailing wage laws. We also need national right-to-work laws.
  4. Of the $343 billion in defense cuts, we could put $43 billion per year on infrastructure, while lopping off $300 billion from the deficit.
  5. And if we can cut military expense, we should go after entitlements as well.

Mike "Mish" Shedlock​

Agreed. If you cut SS, it's only right that you also cut the payroll tax AND return some of that money to those who paid in. Once done, you'll actually increase the deficit over the long term. Once you understand this, you understand that the entire deficit is a result of military spending primarily, and uncompetitive medical pricing secondarily.

Good comments Jon and Judge. The US Social Security System takes your money and pisses it all away on military spending, so there is no SS fund, just an iou from your government. Good luck getting back what you put in. Compare that to your northern neighbour. They too were spending all their CPP contributions for decades. Then in the 90's, they got smart and started to invest the money. Though CPP still isn't fully funded, they have 340 billion invested all over the world. They own airports, roads, land, stocks, bonds etc and have professionals running it. I think the province of Quebec (which doesn't participate in CPP) does an even better job of investing for their citizen's pensions.

So, once again build the country's infrastructure with slave labor and indentured servitude? How quaint!

That's mighty sexist of you.
My opinion is people are willing to wage war base on fear more often than macho. What was the excuse to invade Iraq, Syria, Afghanistan, Libya? From what I saw on the news media, these invasions where all done for the sake of protecting ourselves (fear) and not imperial conquest.

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Jojo, sorry but this is not a solution to anything; only a recipe for more catastrophes. Simple solution is to stop killing animals in slaughter houses as this type of cruel violence begets infinite war and violence. As long as the slaughter houses remain open there is no possibility of peace.

Realist, the forefathers didn’t believe in democracy, they believed in the Republic. When the forefathers started he country women and blacks couldn’t vote so what are you saying? The biggest drain on the country’s finances are entitlements and people who will receive them will never vote for giving them up even if it destroys the country.

I concur , but can we still have the military parade ?, please , please https://www.youtube.com/watch?v=rqj1Trpsolw

Didn't WOMEN raise all those men? Lloyd DeMaus - OWCA - Origins of War in Child Abuse. Read it and weep. You'll never suggest "women" again.

Mish, you forgot TickerGuy's solution - far simpler - jail a couple dozen "health" "care" execs for violations of existing antitrust, price fixing, fraud, etc, law and medical costs drop 80-90% this year. 80% of the 17% looted from the $19T GDP = $2.5T back into the peoples would make this a rich nation again.

Tell the poor people of Libya that having women in charge results in less violence. Hillary Rodman Clinton and the rest of Barry's women bombed their country into chaos. The problem is not men or women - it is the Political Class. Those evil people who pretend that the Social Security Ponzi scheme is a "right", when in reality it is no more than an obligation on future citizens. And they fool the unwary into believing that an accounting entry called the Social Security Trust Fund actually has any real assets.

agree to cease this endless war B.S. but the DoD is fraction of the federal budget, and hovers below 20%. The recent reductions in the other 80% of the budget are styeps in the right direction too.

SweetKenny: I believe your understanding of the forefathers of your country is better than mine. I will concede your point. Thank you for the explanation. Having said that, I still believe that a democracy is stronger when everyone gets to participate and vote. I cringe at the thought of putting too many restrictions on voting. Eventually you will have only the “selected few” voting.

Republican in CA are trying to repeal the governors gas tax. Can't wait to see how this works out. I have thought maybe J Brown has thoughts of a run, and yes there are a fair number of people who have a negative view of him, (personally) to which I say, and what's your point?

You are correct sir.

Unless enough people get off their couches and demand short term-limits, your alternatives, or any other meaningful reforms, have ZERO chance of occuring before we crash and burn.

"The other 80% don't kill people."

Actually, they do. The other 80% include Ideologues such as those in the USSR, Communist China, the Castro Brothers' Cuba, Nazi Germany, Mussolini's Italy, the executions by both sides in the Spanish Civil War, the Khmer Rouge, North Korea,

Governments by Ideologues killed more human beings in the 20th century than all the wars combined.

And this right here is why the problem will never go away and will eventually run us into the ground.

"I paid into it, it's my right!"

As a person who is about 15 years away from "retirement" I am planning as if SS doesn't exist. Did I pay into it? Sure - as long as you understand that "pay into it" means "taken from me at the point of a gun". Am I under the impression that it's mine? Nope. And what you paid in (what was taken from you at the point of a gun) isn't yours either.

Whose face, seal, words are on the paper currency you have? All of it belongs to the government of the Untied States. Which means it's not your money to begin with, it's theirs. "Render unto Caesar" and all that.

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