Chamber of Commerce President Tom Donohue called for a 25 cent increase in the federal gasoline tax Tuesday, saying the federal government urgently needs the money to pay for infrastructure improvements.
“The American Society of Civil Engineers estimates that we need some $3.6 trillion through 2025 to maintain and update our infrastructure. But the longer we wait to make this investment, the worse our infrastructure will get, and the more it will cost us,” Donohue said in an op-ed in USA Today.
Donohue, president of the nation’s largest business trade grade group, said the tax should increase 5 cents per gallon every year over five years. “The modest hike we’re proposing would cost the average American only about $9 a month in additional gas taxes. That figure, however, is dwarfed by the cost of inaction,” he said.
The tax, 18.4 cents per gallon for gasoline and 24.4 cents per gallon for diesel, has not been raised in 25 years, the last time being during former President Bill Clinton’s first year and only after a contentious congressional battle that had Vice President Al Gore casting the deciding vote.
No proposal since then has gained much traction at the federal level. Most Republicans balk at tax increases. Democrats such as Rep. Pete DeFazio, D-Ore., have called for an increase, but many liberals view gas taxes as regressive.
Late last year, the Trump White House reportedly broached the idea of a federal increase with members of Congress as a way to pay for an infrastructure bill.
Donohue argued that a potential deal was possible. “Critics say that raising the gas tax is a political non-starter, but that’s just not true. Thirty-nine states have raised their fuel taxes since 1993. I have yet to hear of an elected official who lost their seat because they supported an increase in the fuel tax. Americans are willing to contribute a little more if it means better, safer roads, and a faster commute,” he said.
