Koch-backed groups warn gas tax increase would undo benefits of Trump tax cuts

Two groups backed by the Koch brothers took another shot at the idea of a 25-cent gas tax hike Tuesday, warning in a new report that the higher tax would undo many of the benefits of the Trump tax cuts and hit certain states particularly hard.

“Just a few months ago, Congress provided long-awaited and much-needed relief to American taxpayers through a comprehensive overhaul of the federal tax code," said Mary Kate Hopkins, the director of federal affairs for Americans for Prosperity. "A gas tax increase would claw back a large portion of that benefit just as individuals and families are starting to see the impact of tax reform in the form of higher wages, more take-home pay, and greater job opportunities."

Anti-tax groups are playing defense as the U.S. Chamber of Commerce, some congressional Republicans and reportedly even President Trump favor raising the gas tax to help pay for a major infrastructure program.

Today, the tax is 18.4 cents a gallon. Raising that by 25 cents would bring in around $400 billion in revenues to the federal government over 10 years, according to the Chamber of Commerce.

Tuesday's report from Americans for Prosperity and Freedom Partners laid out the impact of such a hike on a state-by-state basis, providing a reference for politicians in those states looking to stop their members from voting for a hike. For instance, the higher gas tax would amount to a $240-per-household tax increase in Pennsylvania, a state that Trump won in 2016 and features a Democratic senator running for re-election. It would also bring the total amount of taxes per gallon above $1 in the Keystone State.

The 25-cent hike would also amount to a 70 percent increase in total state and federal gas taxes in Missouri, another red state with a Democratic incumbent up for reelection.

Proponents of a higher federal gas tax argue that because the current tax is not indexed for inflation, it loses its value over time. Also, as cars have become more fuel-efficient, it has raised less revenue.

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