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​

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.