White House rejects raising gas taxes to pay for Biden's Infrastructure plan

The White House rejected the idea of increasing gas taxes on Thursday as a way to pay for United States President Joe Biden’s $2.3T infrastructure plan, planning for a fight with business groups that are calling for American drivers to foot the bill instead of corporate tax hikes.

President Biden’s plan calls for raising the corporate tax rate to 28 percent from 21 percent. Moreover, the plan proposes other tax surges and policy tweaks to confirm companies don’t loophole domestic tax bills by shifting profits overseas.

Announced on Wednesday, the tax proposal was opposed by Congressional Republicans, trade groups including the National Association of Manufacturers, and business groups such as the Business Roundtable and the United States Chamber of Commerce.

Critics say Taxes should be elevated on Motorists

Several critics, including the Chamber and some right-leaning think tanks, stated that taxes should instead be elevated on motorists. Since 1993, United States fuel taxes are some of the lowest globally and haven’t been raised.

Moreover, business lobbies proposed a new mileage tax that would include plug-in electric vehicles (EVs) to support plug holes in the national highway fund.

Jen Psaki, White House Press Secretary, echoing earlier observations by government officials, said Thursday that the White House doesn’t support raising gas taxes.

She added that they disagree with that. Moreover, they do not believe that cost should be on the back of the U.S. people. They think that corporations should be capable of bearing the brunt for investing in United States’ workers.

White House rejects raising gas taxes to pay for Biden's Infrastructure plan
White House rejects raising gas taxes to pay for Biden’s Infrastructure plan
Source: Web

A gas tax would weigh more massively on lower-income U.S. people, who often drive long distances for work, and the Biden government has vowed not to tax anyone making less than $0.4M per annum for the infrastructure plan.

Indeed, gas taxes are also disliked by most voters and politically risky action for any President.

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