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Haslam to detractors of gas tax hike: 'Show me the math'

federaltax.net

NASHVILLE, Tenn. (AP) — Tennessee Gov. Bill Haslam has a challenge for lawmakers seeking alternatives to his proposal to hike the state's fuel taxes to help tackle $10 billion backlog in bridge and road programs.

In the Republican governor's words: "Show me the math on your plan."

Haslam said Tuesday he doesn't want to use general fund tax revenues paid for by Tennesseans to pay for roads used heavily by out-of-state drivers. He argues the fuel taxes paid at the pump come from those who actually use state roads.

Haslam's proposal would generate about $280 million in new transportation funding a year, largely through a 7-cent increase in the tax on each gallon of gas and a 12-cent hike in the tax on diesel.

Opponents argue Tennessee shouldn't raise taxes amid growing revenues.