South Carolina Republican Representative Tom Rice has introduced a bill in the House that would increase the federal gas tax by 10 cents-per-gallon. The increase would help pay for transportation projects across the nation, according to The Hill. The measure would offset the gas tax increase with a $133 income tax credit that would be offered to drivers to minimize the impact of higher prices at the pump. Rice said of the bill that it moves money from the general fund into the Highway Trust Fund. It would raise the gas tax by about 10 cents-per-gallon, which would cost the average driver about $130 per year. Congress has been grappling since 2005 with a transportation funding shortfall.
The 18.4 cent-per-gallon federal gas tax has been the main source of transportation funding for decades, but it has not been increased since 1993, and The Hill reports more fuel-efficient cars have sapped its buying power.