Republican Divided Over Proposed Gas Tax Increase: Who Will Benefit?

Written By BlabberBuzz | Tuesday, 24 January 2023 10:45 PM
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Republican Divided Over Proposed Gas Tax Increase: Who Will Benefit?

House Republicans are proposing a plan to raise the gasoline tax in an effort to pay for President Biden’s infrastructure plan, an idea that Democrats are warning could have a significant economic impact on Americans.

Karine Jean-Pierre, a senior adviser to the Democratic House Majority Leader, warned in an interview with Fox News that the proposed gas tax would be “a giant new tax on the middle class.”

She pointed to studies that have estimated that a 25-cent per gallon increase in the gas tax could cost the average family $1,000 per year, a significant burden on many households.

“When you talk about raising the gas tax, you’re talking about raising the prices of groceries; you’re talking about raising the prices at the pump,” Jean-Pierre said. “You’re talking about raising the costs of logistics and transportation, which would then be passed on to the consumer.”

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Republicans argue that the increase in the gas tax is needed to fund the President’s infrastructure plan and that the tax would be offset by the jobs and economic growth it would generate. However, Jean-Pierre and other Democrats counter that the economic growth would be limited and that the proposed gas tax hike would have a disproportionate impact on lower and middle-class families.

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In response to Jean-Pierre's warnings, Republicans have been split on the merits of the proposed gas tax increase. Rep. Mike Kelly (R-PA) has argued that a gas tax increase would be “the most efficient and equitable way to fund infrastructure projects” and provide the “long-term and reliable source of revenue needed to do so.”

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However, Rep. Mark Meadows (R-NC) has expressed opposition to the proposed gas tax increase, arguing that it would have a negative impact on middle-class and lower-income families.

In addition, some Republicans have questioned the efficacy of the proposed gas tax increase. Rep. Tom Cole (R-OK) has argued that the economic growth generated by the proposed gas tax increase would be limited, and Rep. Carlos Curbelo (R-FL) has stated that the jobs created by the tax would be far fewer than the jobs lost to it.

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At present, the proposed gas tax increase remains highly controversial, with both Democrats and Republicans debating the potential benefits and drawbacks of the proposed tax. Despite the debate, it remains to be seen whether the proposed gas tax will be included in any infrastructure legislation in the near future.

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Jean-Pierre also pushed back against the idea that the proposed gas tax would be offset by the jobs and economic growth it would generate. “The jobs created by this will be far fewer than the jobs lost by it,” she warned.

In the end, the proposed gas tax increase remains highly controversial, with Democrats arguing that it would be a burden on the middle class and Republicans arguing that it is needed to pay for Biden’s infrastructure plan. Ultimately, it will be up to Congress to decide whether or not to include the proposed gas tax in any infrastructure.

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