Published in Last Word
Senators Bob Corker (R-TN) and Chris Murphy (D-CT) have proposed a 12¢ increase in federal gas and diesel taxes in order to fund a long-term reauthorization of highway and transit programs. ACEC has consistently backed an increase in user fees to pay for transportation investments.
Under the proposal, the taxes would be phased in by six cents each year over two years and then indexed to inflation. The increase would potentially raise $190 billion in additional revenue for the Highway Trust Fund over 10 years, which would be enough to maintain current funding levels plus inflation.
“Congress should be embarrassed that it has played chicken with the Highway Trust Fund and allowed it to become one of the largest budgeting failures in the federal government,” said Sen. Corker. “If Americans feel that having modern roads and bridges is important then Congress should have the courage to pay for it.”
The gas tax increase would be combined with commensurate tax cuts, including permanent extensions of the research and development tax credit, state and local sales tax deduction, and other elements of the “tax extenders” package currently under consideration in Congress.
#Transportation