/ Industry, News / US Congress could raise gas taxes in 2014

US Congress could raise gas taxes in 2014

Linked In Share
US Congress could raise gas taxes in 2014

With the US Congress facing a major shortfall in transportation funding next year, Congress is eying a boost in the federal gas tax to make up the difference.

Rep. Earl Blumenauer announced a proposal, also called The Update, Promote, and Develop America’s Transportation Essentials (UPDATE) Act, that would phase in a 15 cent/gallon tax increase over the next three years on gasoline and diesel. With the proposal, the federal tax would increase to 33.4 cents per gallon on gas and to 42.8 cents per gallon on diesel.

The current federal gas tax stands at 18.4 cents per gallon and has not been increased in nearly 20 years. Blumenauer says that means that taking into consideration inflation and increased fuel efficiency for vehicles, “the average motorist is paying about half as much per mile as they did in 1993.” That, Blumenauer believes, needs to change.

“Instituting a reasonable gas tax increase now provides the revenues Democrats say they want with a form of a user fee which historically has been acceptable to Republicans including Ronald Reagan, who increased the gas tax by a nickel a gallon in 1982,” he said.

A few years ago, the Federal Highway Administration (FHA) announced that over $70.9 billion worth of repairs were needed to maintain safe infrastructure; that followed shortly on the heels of the collapse of the I-35W Mississippi River bridge in 2007. That collapse, which killed 13 people and injured 145, spurred a dialogue about the condition of roads and bridges in the country. The general consensus? It’s not terrific.

The American Society of Civil Engineers 2013 Report Card gave Roads in America a D and issued Bridges a C+. The report noted that 42% of America’s major urban highways remain congested, costing the economy an estimated $101 billion in wasted time and fuel annually. The report also stressed that one in nine of the US bridges are rated as structurally deficient, while the average age of the nation’s 607,380 bridges is currently 42 years. The ASCE calls for $3.6 trillion in additional investments for all infrastructure with nearly $200 billion earmarked for roads and bridges per year.

It could be a tough sale but Blumenauer hopes that emphasizing that those who benefit most from the tax are those that will bear the burden of the increase might win some support in Congress. He can, however, expect those taxpayers to yell the loudest. With the average driver in the U.S. tackling 13,476 miles each year, the increase would cost drivers more than $80 in additional gas taxes per year (assuming a 24.6 mpg average). That would be nearly double the current rates: at those averages, taxpayers now pay just over $100 in federal gas taxes. Males ages 35-54 will be hit the hardest since statistically, they put more miles on the road (about 40% more than the average).

Via Forbes

by Aurel Niculescu (my Google+) - Thursday, December 5th, 2013 - filed under Industry, News. Image credit: .
Linked In Share
Related Articles


Discuss: US Congress could raise gas taxes in 2014

Leave a Reply


















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

No new driver era in F1 – Hamilton
No new driver era in F1 – HamiltonJan.19 (GMM/Inautonews.com) Lewis Hamilton has baulked at claims a new guard is sweeping into power in formula one. After the ...
Rosberg likes taste of Vettel-esque dominance
Rosberg likes taste of Vettel-esque dominanceMar.19 (GMM/Inautonews.com) Nico Rosberg on Wednesday vowed not to get ahead of himself, despite admitting he likes the taste of ...
Bentley announce record profit for 2013, plans 50 percent boost by 2018
Bentley announce record profit for 2013, plans 50 percent boost by 2018Bentley Motors Ltd., Volkswagen AG’s U.K. luxury unit, on Wednesday announced record profit of 167.7 million euros (£139.7) up ...
Facelifted Fiat Ducato spied
Facelifted Fiat Ducato spiedThe facelifted version of the Fiat Ducato is currently being tested by the Italian based automaker and the model in question has ...
2015 Mercedes-Benz C63 AMG spied
2015 Mercedes-Benz C63 AMG spiedThe C63 AMG version of the newly unveiled Mercedes-Benz C-Class has been recently spied while it was being tested. The German ...
Bentley to move all W12 engine production to Britain from Germany
Bentley to move all W12 engine production to Britain from GermanyLuxury carmaker Bentley Motors, the largest producer of 12 cylinder engines, on Wednesday said the company would move production ...
Bentley SUV – first official image released
Bentley SUV – first official image releasedLuxury automaker Bentley has released the first official image with the SUV which will be hitting the streets in a couple of ...
BMW M4 Cabrio spied
BMW M4 Cabrio spiedOur spy photographers have managed to capture the brand new BMW M4 Cabrio while it was being tested on the track. BMW is getting ...
New-gen Audi R8 spied
New-gen Audi R8 spiedThe new generation of the Audi R8 has been recently caught on camera while it was being tested on the track. With the ...
Italy: Fiat’s Pomigliano D’Arco Workers Accept Solidarity Contracts
Italy: Fiat’s Pomigliano D’Arco Workers Accept Solidarity ContractsThe Italian automaker Fiat has recently agreed with the labor unions to put 2,000 employee at the Pomigliano D'Arco plant on ...
Audi unveils A4, A4 Avant and A5 Coupe Ultra
Audi unveils A4, A4 Avant and A5 Coupe UltraAudi has officially pulled the wraps off the new A4, A4 Avant and A5 Coupe Ultra as the three models will go on sale in the UK ...
Recall roundup: Volkswagen Passat for headlight problems
Recall roundup: Volkswagen Passat for headlight problemsVolkswagen has recently announced a recall for the Passat because of a problem spotted with its headlights. The National Highway ...
BMW expands US, Chinese output, plans to sell 2-million vehicles in 2014
BMW expands US, Chinese output, plans to sell 2-million vehicles in 2014BMW, the world’s largest premium carmaker is looking to expand production capacity at its plants in the United States and ...
Slow Sales: Chrysler Suspends Viper Production for Two Months
Slow Sales: Chrysler Suspends Viper Production for Two MonthsDue to slow sales Chrysler announced it will suspend SRT Viper sport coupe production for more than two months. A spokesman for ...
Lamborghini Gallardo meets its end in Bangkok
Lamborghini Gallardo meets its end in BangkokA white Lamborghini Gallardo has recently met its end in Thailand after its driver lost control of the wheel and crashed ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Spied-Fiat Ducato Facelift 001
Spied-Mercedes C63 AMG 001
bentley-official-suv
Spied-BMW M4 Cabrio 001
Spied-Audi R8 001
ferrari f12 berlinetta gumball 3000 2014 1
pagani huayra orange hong kong 1
bmw m4 motogp safety car 1
Porsche-Cayman-GTS-05
mercedes-benz a45 amg posaidon tuning 1
Mercedes-Benz S63 AMG Coupe 1
0-

More automotive from inautonews
Bentley Motors Ltd., Volkswagen AG’s U.K. luxury unit, on Wednesday announced record profit of 167.7 million euros (£139.7) up 66.9 percent compared to 2012, its strongest ever performance. Turnover grew by 15.5 percent to €1.68 (£1.40) billion, the highest in Bentley’s history. Profit ...
read more
Inautonews Editors Section
Test Drive: Renault Captur 0.9 – TCe 90 – fast review
Test Drive: Renault Captur 0.9 – TCe 90 – fast review After we’ve tested almost all Renault Captur models, we decided to check out the 3-cylinder engine - 898 cc 66kw (90 hp) model. Why we’ve ...
Test Drive Fiat 500L Living – Review
Test Drive Fiat 500L Living – Review Who ever thought in 2007, when Fiat unveiled the new 500 citycar that the Italian automaker will ever build a seven-seater 500 model. Clearly, ...
Test Drive Fiat 500L Trekking – Review
Test Drive Fiat 500L Trekking – Review Fiat had a great success back in the 60’s with the 500 model. It was cheap, practical and equipped with a 479 cmc petrol engine – that’s why ...

Editors Section
Inautonews Editors Section
2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video] 2009 safest cars Euro NCAP

Latest in Safety Recall roundup: Volkswagen Passat for headlight problemsVolkswagen has recently announced a recall for the Passat because of a problem spotted with its ... Recall roundup: Cadillac XTSThe North American based automaker Cadillac has recently announced a recall for certain XTS luxury ...
Safety Section