Koch Brothers Oppose Trump’s Gas Tax Hike

The Koch brothers are against a $0.25 gasoline tax hike that would pay for planned infrastructure construction, according to a new report in the Washington Post.

“I urge you to oppose the 25-cent gasoline tax increase to fund infrastructure legislation,” Philip Ellender, head of government and public affairs at Koch Companies Public Sector, told members of Congress in a letter last week. “Just as many Americans are starting to see more money in their pockets from tax reform, ask yourself: Does the government want to take back a large portion of this tax relief to pay for more government spending?”

President Donald Trump proposed the 25-cent tax hike several times during a closed-door meeting earlier this month, Senator Thomas R. Carper (D-Del.) told reporters. Even before the meeting, Americans for Prosperity and Freedom Partners – both Koch-funded groups – had announced their opposition to the tax hike, which would fund $1.5 trillion in infrastructure spending.

“I oppose raising the federal gas tax,” Wyoming Senator John Barrasso, who chairs the Senate committee working on infrastructure, said. After hearing Trump’s arguments, he added: “not everyone who uses the roads today pays the tax, and not all of the money collected goes towards fixing America's aging roads and bridges.”

Last month, the U.S. Chamber of Commerce called for a “modest” increase in the federal fuel fee, because inflation and vehicle fuel economy have eroded its value since it was last raised back in 1993.

“Increasing the fee by a total of $.25 cents, indexed for inflation and improving fuel economy, would raise $394 billion over the next 10 years,” Chamber of Commerce president and CEO Tom Donohue said.

Republican lawmakers have pushed back on the idea of raising the gas tax, but there are some who are thinking the unthinkable, the Washington Examiner reports.

By Zainab Calcuttawala for Oilprice.com

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