As gas prices fall, higher federal gas tax proposed

As Gas Prices Fall, Higher Federal Gas Tax Proposed
As Gas Prices Fall, Higher Federal Gas Tax Proposed

WASHINGTON - With gas prices at their lowest in years, Senator Bob Corker (R-Tenn.) is proposing a gas tax hike.

The current federal gas tax is 18.4 cents per gallon and has not been raised since 1993.

Senator Corker has proposed a 12 cent per gallon hike spread over two years.

Revenue from the tax funds interstate projects, some of which have been delayed, as less money has come in as vehicles become more efficient.

There are projections the Highway Trust Fund will be short $160 billion over the next ten years.

States often add their own tax on top of the federal gas tax.

Tennessee adds 21.4 cents to each gallon of gas, which is the 13th lowest state gas tax in the country.

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