New President Obama Gas Tax

When the President talks about fixing the highways you should hold on to your wallet. President Obama is going to call for a $50 billion immediate investment in roads, rails and runways. This means they are looking into a gas tax increase and user fees to pay for government transportation projects. The bottom line is most industry experts insist gas prices will have to rise to pay for the grand plans. We wonder where all that stimulus money they were going to use to fix road with shove ready projects. The current federal gas tax, which has remained unchanged since 1993, is 18.4 cents per gallon. The average when you add state tax is an average of 48 cents extra on every gallon of gasoline. The administration wants to fund the $50 billion investment for the six-year transportation program. The of course during the campaign season are saying this will be paid for by closing tax loopholes for oil and gas companies and there is no need to increase to the fuel tax. The real numbers are the federal government has and what the federal government needs for transportation projects falls somewhere between $134 billion and $262 billion a year. Everyone in Washington knows this is coming but they are not letting the heartland and Main Street hear the whispers. The thunder will erupt after the mid term elections when the damage and fall out can no longer effect voter decision.

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