Bipartisan Plan to Increase Fuel Taxes Surfaces

A surprising and unexpected bipartisan plan to increase gas and diesel taxes by 12 cents each emerged June 18 from Sens. Bob Corker (R-Tenn.) and Chris Murphy (D-Conn.). Taxes would increase six cents a gallon annually for two years.

2 minute read

June 19, 2014, 10:00 AM PDT

By Irvin Dawid


"The Murphy-Corker plan would raise the gas tax by 12 cents over the next two years, raising $164 billion over the next decade and covering the shortfalls in the Highway Trust Fund," writes Alexander Bolton about the plan that would also index the taxes to the consumer price index to keep pace with inflation.

In the words of Streetsblog's Tanya Snyder, this one "might actually have a chance."

The tax increase is offset with $189 billion in tax relief proposals over the next decade, though that did not dissuade the American for Tax Reform and other conservative organizations from not opposing their plan, which may prove to be a considerable challenge for senators who took a pledge to oppose any tax increase legislation.

However, senators who want to ensure that the states they represent have healthy transportation budgets might be influenced by Corker's press release: "Tennessee Could See 50 Percent Reduction in State’s Transportation Budget in 2015 if No Solution is Reached". 

While a major tolling advocate was disappointed that the Corker-Murphy proposal didn't allow for interstate tolling as does Obama's Grow America Act, they praised the plan nonetheless, calling it “gutsy” but warning that "increasing the gas tax and indexing it to inflation would still not permanently solve the problems with transportation funding in the U.S.," writes The Hill's Keith Laing.

How does the Corker-Murphy plan compare with other revenue-producing proposals? Snyder writes that it "has far more potential than anything else that’s been offered."

President Obama’s corporate tax scheme was dead on arrival, even though it had support from the Republican chair of the Ways and Means Committee, Dave Camp. Rep. Peter DeFazio’s idea of a per-barrel oil fee and Sen. Barbara Boxer’s idea for a wholesale oil tax don’t have Republican support. Neither does Rep. Earl Blumenauer’s 15-cent gas tax hike, which was the most logical proposal on the table, until now. 

Bolton captured Corker's summation of the House Republican proposal based on funneling savings from the Postal Service: “Only in Washington would you take money from insolvent enterprise to fund another insolvent enterprise.”

Wednesday, June 18, 2014 in The Hill

Large blank mall building with only two cars in large parking lot.

Pennsylvania Mall Conversion Bill Passes House

If passed, the bill would promote the adaptive reuse of defunct commercial buildings.

April 18, 2024 - Central Penn Business Journal

Street scene in Greenwich Village, New York City with people walking through busy intersection and new WTC tower in background.

Planning for Accessibility: Proximity is More Important than Mobility

Accessibility-based planning minimizes the distance that people must travel to reach desired services and activities. Measured this way, increased density can provide more total benefits than increased speeds.

April 14, 2024 - Todd Litman

Rendering of wildlife crossing over 101 freeway in Los Angeles County.

World's Largest Wildlife Overpass In the Works in Los Angeles County

Caltrans will soon close half of the 101 Freeway in order to continue construction of the Wallis Annenberg Wildlife Crossing near Agoura Hills in Los Angeles County.

April 15, 2024 - LAist

Rendering of proposed modern glass high-speed rail station in Houston, Texas.

Amtrak Takes Lead on Texas Central Rail

The high-speed rail project isn’t a done deal, but if it moves forward, trains could begin operating in 2030.

9 minutes ago - Smart Cities Dive

Aerial view of mid-rise brick buildings in Portland, Maine on waterfront.

Maine Approves Rent Relief Program

Legislators hope the assistance program will help struggling low-income households avoid eviction.

1 hour ago - The Portland Press Herald

Empty hallway lined with white tile in subway station in Philadelphia, Pennsylvania.

How Transit Architecture Impacts Real and Perceived Safety

More than a third of Americans believe major transit systems are too unsafe to ride. The built environment can change that.

2 hours ago - WHYY

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.