Published: Wed, May 03, 2017
Business | By Patricia Jimenez

Trump says he's willing to consider raising gas tax

Trump says he's willing to consider raising gas tax

The last hike on gas taxes came in 1993 under former President Bill Clinton, raising the tax 18.4 cents per gallon on gasoline and 24.4 cents per gallon on diesel fuel. Equal to the number of pages of history it sounds like he has read, with his comments about Andrew Jackson and the Civil War. Trump said in a CBS interview released on Monday that "we've got the plan largely completed and we'll be filing over the next two or three weeks, maybe sooner".

A tax plan from House Republicans that was endorsed by Paul Ryan the House Speaker would raise close to $1 trillion through imposing new tariffs on imports that have been frequently call border-adjustment taxes.

Reacting to criticism over a lack of specifics in the president's tax ideas, White House budget director Mick Mulvaney told CNBC last week that the plan was purposely vague. Trump's massive tax cut is a solution in search of a problem.

The conservative group Club for Growth immediately urged Trump to forget it.

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Unfortunately, the majority of the details regarding the tax cuts are unknown, such as how exactly the government will be able to achieve the goals outlined.

In an interview on CNBC, Trump infrastructure advisor and real estate developer Richard Lefrak from The Lefrak Organization admitted that a fuel tax is one of the third rails of politics.

Donald Trump tax reform to seek 15 per cent corporate rate
Shortly after the election, Mnuchin said Trump's tax plan would provide "no absolute tax cut for the upper class". Asked how he measured that, he pointed to the size of the rate cut for corporations from 35% to 15%.

Even so, the United States economy expanded at its slowest pace in three years, at 0.7pc, in the first quarter, underlining the challenges of an administration aiming for 3pc or higher annual growth.

It's a rare tax increase that enjoys support from the businesses most likely to bear the higher cost.

Additionally, the corporate tax rate will be lowered from 35 percent to 15 percent; additionally, smaller businesses would also be subjected to the 15 percent rate.

While it's hard to compare taxes across decades, two common ways to measure are the dollar amount of tax cuts and the percentage taxes fall at the top individual income bracket. "We applaud President Trump for putting this option on the table, and we encourage Congress to give the gas tax a fair look as it considers tax reform and infrastructure investment legislation this year".

On tax cuts as a version of a jobs bill: "More than 70% of the tax burden on business is passed on to the workers".

Stockman expects a "constant fiscal crisis and stalemate" in D.C., which will ultimately delay the "good stuff", like a tax cut, from ever happening.

Investors are also optimistic about the chance of economic stimulus in the form of spending on infrastructure or reduced taxes for consumers, which would have benefits for the economy as a whole, at least in the short term.

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