Which 1990 U.S. law increased the federal gasoline tax by 5 cents per gallon?

The Omnibus Budget Reconciliation Act of 1990 increased the U.S. federal gasoline tax by 5 cents per gallon. Congress passed the law as part of a deficit-reduction agreement during President George H. W. Bush’s administration.

The increase took effect in December 1990 and raised the federal gasoline excise tax from 9 cents to 14 cents per gallon. Federal motor-fuel taxes are generally collected from fuel distributors and incorporated into the price paid by motorists.

Unlike an income tax, a gasoline excise tax is a per-unit levy: the amount depends on gallons purchased rather than a person’s earnings. Revenue from federal fuel taxes has traditionally supported transportation programs, especially the Highway Trust Fund.

The measure is sometimes confused with the 1986 Tax Reform Act, which made broad changes to federal income-tax rules. The 1990 law was chiefly associated with budget negotiations and deficit reduction.