Why the gas tax could go up

Proposals for a gas tax holiday faltered over job losses – and now lawmakers need to come up with money to repair roads.

WASHINGTON (AP) — The political vision of a summer gas tax holiday died a quick death in Congress, losing to a view that federal excise taxes on gasoline and diesel fuel will have to go up if they go anywhere.

Despite calls from the presidential campaign trail for a Memorial Day-to-Labor Day tax freeze, lawmakers quickly concluded – with a prod from the construction industry – that having $9 billion less to spend on highways could create a pre-election specter of thousands of lost jobs.


Now, lawmakers quietly are talking about raising fuel taxes by a dime from the current 18.4 cents a gallon on gasoline and 24.3 cents on diesel fuel.

AP