Representative Proposes Gas Tax Increase

Washington state representative suggests raising federal gas tax by 15 cents per gallon.

July 16, 2015

WASHINGTON – According to U.S. Representative Rick Larsen (D-WA), fixing the country’s crumbling transit infrastructure will require nearly doubling the federal gas tax. This week, Larsen announced his co-sponsorship of a bill that would raise the gas tax by 15 cents a gallon over the course of three years, in an effort to raise revenue to repair the nation’s highways, bridges and other transportation projects.

"We've been doing a little bit of fiddling while Rome has been burning, meaning our infrastructure in this country is falling part. We need to have a long-term plan to finance its rebuilding and the maintenance of it, as well," Larsen said in an interview with CNBC's "Closing Bell."

The federal gas tax, which funds the Federal Highway Trust Fund, has remained at 18.4 cents a gallon since 1993. The fund provides money for infrastructure work and is set to expire on July 31.

In advocating for his bill, Larsen pointed out that if the tax grew by inflation since the last increase, it would be at 30 cents right now. The proposed increase would raise the tax to 33 cents per gallon, which would mean about $19 billion more annually over the life of the increase for infrastructure repair, he said.

At the same time, House Republicans this week introduced an approximately $8 billion highway funding patch that, if passed, would extend federal transportation spending until December.

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