President Trump swayed from his anti-tax agenda Wednesday and endorsed a 25 cent spike in the federal gasoline tax. The money that accrues will be used to pay for the massive infrastructure plan unveiled this week.
“The gas tax has its pros and cons, and that’s why the President is leading a thoughtful discussion on the right way to solve our nation’s infrastructure problems,” a White House official said.
He might be able to get a few Democrats to support his plan because they’re always willing to come out in favor of a tax increase, but getting Republicans to agree will be tricky if not possible.
The administration is riding through a wave of scandal right now. President Trump’s bombshell tax plan was only implemented a few months ago and people are already feeling the effect. It could be like a slap in the face to introduce a new tax so quickly.
Transportation Secretary Elaine Chao admitted that a gas tax wouldn’t be politically popular, although it might be necessary.
“The President has not declared anything out of bounds, so everything is on the table. The gas tax, like many of the other pay-fors that are being discussed, is not ideal,” she said.
“There are pros and cons. The gas tax has an adverse impact, a very regressive impact, on the most vulnerable within our society; those who depend on jobs, who are hourly workers. So these are tough decisions, which is why, once again, we need to start the dialogue with the Congress, and so that we can address these issues on this very important point.”
On Monday the administration unveiled a $1.5 trillion tax plan. The bulk of the money will come from the states, with Trump pledging the federal government for just $200 billion of the total amount.
(Source: New York Post)