Should the Gas Tax be Increased to Fund Transportation Infrastructure Projects? (H.R. 1664)
Do you support or oppose this bill?
What is H.R. 1664?
(Updated July 30, 2019)
This bill would allow the Dept. of the Treasury to issue 30-year “Invest in America Bonds” that would finance transportation infrastructure projects and would be paid for by increasing the tax on gasoline and diesel and indexing it to inflation. Bonds would be repaid at the end of their 30-year term, and the Treasury would be authorized to issue them through 2030.
Indexation of the gasoline and diesel taxes would be based on two factors: the cost of construction for transportation projects and reduced motor fuel usage. It’s estimated that the tax would be increased by 1 cent per year and generate about $500 billion in tax revenue. To prevent large fluctuations in the level of the tax, the indexation would be capped at 1.5 cents per gallon.
This legislation would also undo a provision of current law that requires $7.6 billion in highway funding be rescinded on July 1, 2020 -- effectively allowing the government to still use the funding.
Argument in favor
This would modestly increase the tax on gasoline and diesel in order to provide the funding needed for rebuilding our crumbling network of roads, bridges, and transit systems.
Argument opposed
Raising the tax on gasoline and diesel will hurt the economy by taking more money out of Americans’ pockets. There are better ways to fund transportation infrastructure projects.
Impact
Transportation infrastructure; people and businesses that buy gasoline and diesel; and the federal government.
Cost of H.R. 1664
A CBO cost estimate is unavailable.
Additional Info
“Today, I am introducing legislation that will provide approximately $500 billion in additional investment for roads, bridges, and transit systems and fill the hole in the Highway Trust Fund. My bill will address our state-of-good-repair backlog, repair or replace deficient bridges, create tens of thousands of good-paying American jobs, and keep us competitive in the world economy. A Penny for Progress is a straightforward, practical bill that deserves consideration.”
This legislation has the support of 17 cosponsors in the House, including 16 Democrats and one Republican.
Media:
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House Transportation Committee Democrats Press Release
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DC Velocity
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American Road and Transportation Builders Association
Summary by Eric Revell
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