Your Tax Dollars At Work: Budget Office Says New Fuel Standards Will Require Higher Gas Taxes

Rising fuel-efficiency standards will cut gas tax revenue by $57 billion through 2025, the Congressional Budget Office said in a report released Wednesday.

The government should consider hiking the 18.4 cent per gallon federal gas tax — which hasn't been increased since 1993 — or cutting spending on road repairs or paying for repairs through the general budget, the report said.

The Obama administration reached a deal with 13 major automakers in July to hike fuel standards to 54.5 mpg between 2017 and 2025.

The report says that the higher efficiency standards — including the 2012-16 rules — will cut the Highway Trust Fund 13 percent over 11 years through 2025.

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knowitall1985 - 5/4/2012 10:43:59 AM

+2 Boost

The goverment doesn't have to take more tax out of our paychecks. That would piss everyone off. They just let gas prices stay high and tax us there.