A 40-Cent per Gallon Price Increase Predicted for Gasoline
For the oil patch producers looking for higher prices as an incentive for drilling, an import tax proposed by U.S. House Republicans would be good news. But for a family looking for a cheap driving vacation, the tax could push up the price of gasoline at the pump by as much as 40 cents per gallon.
Corporate tax reform and various tax proposals were a large part of President Donald Trump’s campaign, and have been discussed with more frequency and fervor since he took office. Much has been made of the twenty-percent tax proposal on imports from Mexico to pay for the wall the President promised to build along the border, but the tax proposal that appears to have a bit more momentum is a “border adjustment” tax sponsored by U.S. Representative Kevin Brady (R-The Woodlands) and Speaker Paul Ryan. In their plan, they suggest a twenty-percent tax on all imports to pay for cutting the corporate income tax rate from 35 percent to 20 percent. (There would be no tax on exports.) Ultimately, this could increase profits for companies and, according to independent studies, bring in around $1 trillion. The idea behind the proposal is to give U.S. companies an incentive to keep their factories in the United States.
Written by R.G. Ratcliffe for TexasMonthly.com