White House: Trump still committed to $1T infrastructure plan
- Author: Leroy Wright May 06, 2017,
May 06, 2017, 12:22
"It's something that I would certainly consider", Trump told Bloomberg News in an interview.
The federal government has not raised the excise tax on diesel and gasoline since 1993.
White House press secretary Sean Spicer said during his daily briefing that Trump "absolutely" intends to unveil a $1 trillion infrastructure package sometime this year.
Spicer said that "out of respect" Trump said he 'would listen to them and consider it'. For instance, the document offered scant information about whether larger families would get a break as they do in the current system, how imports and exports would be taxed or what multinational corporations would owe on their earnings overseas.
Influential MIT economist David Autor "strongly disagreed" with the logic behind the pay-for-itself feature, and explained it this way: "I'm not sure it should be called a plan because it's so devoid of content", he wrote.
It remains to be seen how the Trump administration's final tax plan will look as well as how lawmakers will change such proposed tax plan prior to some, all or none of it being enacted into law. It's a no-brainer that raising the gas tax will cost drivers more to fuel their way to deliver goods. It lacked key details, but it centered on lowering the tax rate on corporations and businesses to 15 percent, reducing individual rates, and doubling the standard deduction for individual taxpayers. Instead, he suggested reviewing existing taxes to make sure they do not already have the potential to fund infrastructure needs.
Sure, it seems like tax cuts might jumpstart the economy, but this is a false and misguided hope for the feeble-minded. It's hard to be precise since the plan lacks specifics on tax brackets where various rates would kick in.
The American Trucking Association, which supports a gas-tax increase as the most efficient method to raise revenue for highway infrastructure, welcomed Trump's comments.
Speaking at the Milken Institute Global Conference in Beverly Hills, California, nearly a week after he helped unveil plans to cut taxes for many people and corporations to 15 percent, Mnuchin said tax reform and regulatory relief will help spur economic growth.
Voters showed a range of support, from lukewarm to enthusiastic, for aspects of the administration's plan aimed at simplifying the individual tax code.
In an interview on CNBC, Trump infrastructure advisor and real estate developer Richard Lefrak from The Lefrak Organization admitted that a fuel tax is one of the third rails of politics. But more money for highways could also increase the number of construction jobs in the economy, helping growth. Other ideas include the "Fair Tax" (replacing income taxes with higher sales taxes) and the flat tax.
Mr. Trump also dismissed widespread reports that his administration is riven by discord, saying he is sticking by his polarizing chief strategist, Steve Bannon, calling him a "very decent guy" with an "alt-left" ideology who is getting a "bad rap".