Koch Industries urges Congress against 25-cent gas tax increase to fund infrastructure

February 16, 2018

min read

Dear Member of Congress:

On behalf of Koch Companies Public Sector, I urge you to oppose the 25-cent gasoline tax increase to fund infrastructure legislation. While we support efforts to improve America’s infrastructure, there are multiple avenues to consider before resorting to another tax hike. Just as many Americans are starting to see more money in their pockets from tax reform, ask yourself: Does the government want to take back a large portion of this tax relief to pay for more government spending? Instead, we should focus on eliminating costly subsidies, preferences and giveaways that do little to help American families improve their lives.

The U.S. Chamber of Commerce estimates the tax would raise $394 billion over the next decade. However, this revenue increase would come at a tremendous cost to consumers. Americans used an average of 1,140 gallons of gas per household in 2016, according to data from the U.S. Energy Information Administration and the U.S. Census Bureau. Based on that average, a 25-cent increase per gallon would mean that American households would spend an extra $285 on gas each year. Taxpayers are now beginning to see more money in their paychecks thanks to the recent tax code overhaul. Dipping into their pockets to take that money back makes little sense, and hurts American families who need it most. 

It is also worth considering that the Highway Trust Fund as currently administered pays for more than highways, roads and bridges, including non-transportation projects. More money does not guarantee improved infrastructure. Any infrastructure package must have proper oversight and accountability, eliminate wasteful spending, focus on removing regulatory barriers that delay projects and drive up costs, and prioritize the critical areas for which the Fund was originally intended.

Koch bases its government and public affairs activities on principles that bring the greatest well-being to society. We have consistently opposed any government policy that increases costs on consumers, particularly on the most vulnerable in society. As you consider this important proposal, we encourage you to only advance legislation that helps people improve their lives. A gas tax increase does anything but advance that ideal.

Sincerely,

Philip Ellender

President, Government & Public Affairs

Koch Companies Public Sector, LLC