Proposal to Double Fuel Tax

January, 2014

Fuel Island 006With the aging and dilapidated highway network, congress is looking for ways to fund the necessary improvements.  One such revenue stream is the federal fuel tax.  A bill proposed by US Rep. Earl Blumenauer (D-OR) would increase the gasoline and diesel fuel tax by $.15/gallon, from $.184 to $.334, over the next three years.  The last time the federal fuel tax was increased was back in 1993.  Twenty years of inflation and decreased consumption as a result of improved fuel economies have negatively affected the funds available in the Highway Trust Fund.

 

Rep. Blumenauer then went on to re-introduce legislation to study how the government can practically employ a tax on the number of miles driven.