A Tax Proposal Story That Has a Happy Ending for Hardworking Iowans

Statement

The Obama Administration kicked off the annual budgeting process with their 2017 request to Congress. In the U.S. House of Representatives, my colleagues and I are reviewing the proposal and writing our own budget proposal which we'll unveil, and vote on our federal fiscal blueprint in the coming weeks. I will only support a budget that balances, doesn't raise taxes, holds the line on spending and makes government more efficient and effective for hardworking Iowans.

One proposal included in the president's budget caught most Americans off guard -- a new $10.00 tax on every barrel of crude oil in the United States. This would increase the price at the pump Iowans pay by 25 cents each gallon they put into their vehicle, more than doubling the current federal gas tax.

If this new tax were enacted, Iowans would be sending more of their hard earnings to Washington. And, every additional 25 cents sent to Washington is less money hardworking Iowans would have to use for groceries, their rent or mortgage, childcare, school supplies, a family vacation or savings.

The president touted his new tax citing that now is the right time to implement his new tax plan because gas prices are low and "gas prices are expected to be low for the foreseeable future." But this proposal would be bad policy at any time, regardless of where the price of gas stands because it is a regressive tax that hits low income and struggling Iowans the hardest. It is a tax particularly punishing to those folks who are forced to commute long distances to provide for their families or who live in rural areas. And the increase at the pump means the cost of all goods, and the transportation of them, would also be passed along to consumers who are already fighting to make ends meet.

The one common message I hear from Iowans as I travel throughout the Third Congressional District each week is that people are frustrated. I don't blame them - the economy is tough. Most middle class Iowans have not seen a pay raise in decades - they are not sure how they are going to be able to afford retirement or send their kids to college. These are real concerns and the last thing anyone outside of Washington, D.C. wants to see is another tax that further erodes their struggling bottom line every time they fill up their vehicles.

But this story has a happy ending for your wallet, pocketbook and bank account.

I oppose this gas tax - the overwhelming majority of members of the House and Senate oppose it - and the Republican leadership of the House and Senate oppose it. That means the president's new gas tax is "dead on arrival" and has zero chance of being approved by this Congress.

As we continue debating the annual budget process in the coming weeks, we will continue to reassess our priorities and chart a commonsense course for our nation's future and her hardworking people. I am steadfast in my commitment to only supporting policies that strengthen you and your family's economic security, offer you and Iowa's job creators greater opportunity, and benefit the bottom line of hardworking Americans before special interests in Washington, D.C.

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