Senators propose 12-cent per gal gas tax increase

Senators propose 12-cent per gal gas tax increase

Credit: Getty Images

CHICAGO, IL - MAY 22: A sign marks the location of a Marathon gas station on May 22, 2014 in Chicago, Illinois. Marathon Petroleum Corp. has agreed to purchase Hess gasoline stations for $2.6 billion. The acquisition will expand Marathon Petroleum’s retail presence from nine to 23 states. (Photo by Scott Olson/Getty Images)

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by ASSOCIATED PRESS

khou.com

Posted on June 18, 2014 at 11:40 AM

WASHINGTON (AP) - Two senators are proposing to raise federal gasoline and diesel taxes for the first time in more than two decades as Congress struggles with how to pay for highway and transit programs.
   
Senators Chris Murphy, a Connecticut Democrat, and Bob Corker, a Tennessee Republican, pitched their plan Wednesday as a bipartisan solution to replenish the federal Highway Trust Fund. That fund is forecast to go broke in late August.
   
The plan would raise the 18.4 cents a gallon federal gas tax and 24.4 cents a gallon diesel tax by 12 cents each over the next two years, and then index the taxes to keep pace with inflation.
   
The plan calls for offsetting the tax increases with other taxes cuts, possibly including extending federal tax breaks that expired this year.

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