Despite the claim that chairman of the House Transportation and Infrastructure Committee, Bill Shuster, made two weeks ago that it is “not the time” for a fuel tax hike, rumblings from multiple different groups are indicating that that may be far from the case.
At a Senate hearing this week, the heads of the Chamber of Commerce pushed for an increase in fuel taxes. “When you look at the big picture, the simplest, most effective way to generate enough revenue is by increasing federal gasoline and diesel taxes,” said Thomas Donohue, president of the Chamber of Commerce.
The Chamber of Commerce joins representatives from both big business and labor unions who told the Senate’s Environment and Public Works Committee that increasing the gas tax was an obvious way to raise funds in order to maintain the nation’s roads – a task they say is vital to staying economically competitive on a global level.
The ATA has also voiced its support for a hike in the fuel tax, saying that an increase of 15 cents per gallon and tying the tax to inflation would create a “sustainable” source of revenue. While it may seem surprising that a trucking group would advocate for an increase, the fuel tax would be levied against both gasoline and diesel vehicles, meaning that while heavy vehicles cause the majority of wear-and-tear on highways, the cost for maintaining them would fall on all motorists.
The last time the fuel tax was raised was back in 1993 when diesel was raised proportionately with gasoline which went from 14.1 to 18.4 cents per gallon.
Proponents for the tax increase urge a swift change, saying that inaction may be tempting, but will cost the American people more in the long run.
“Delaying infrastructure investments will cost us more in the long run, not less,” said AFL-CIO President Richard Trumka. “The facts have been studied, reported and discussed to death. The highway trust fund is at a crossroads. Failure to act will mean the transportation system will decay further. To be blunt, we can’t bury our heads in the sand.”
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Instead of increasing the Fuel tax, why don’t they start taxing farm fuel, in other words, eliminate the road/off road fuel difference? The tracked or multi-wheeled tractors and other motorized farm machinery do just as much, if not more damage to the roads then heavy trucks. They can pay their fair share for road up keep.
– Randy.
I think the tax should come from big oil as a cost of doing business and making record profits in the billions year after year. You want our business as the largest consumer of fuel in the world, then you bear the burden through supporting the cost of upkeep of the infrastructure. Make it a tax tht can’t be passed on to consumer. Coporate America can take a smaller cut of the pie and help support who you are making all the money from.
An across the board tax to the American people who are trying the best they can to survive under a government that has forgotten them and their needs is not the way to go. One has to rememebr that all tax increases never make it to the companies doing the damage to the roads. It is all passed on to the consumer in everything they purchase from food, clothing, utilities, rent, etc.
Also traditional road building methods do not work! New inventive materials that are not prone to decay from salt and deicing materials, adverse heat or weather, and reducing the costs by making roads funtional instead of “pretty”. I say this because how many bridges and roads around the country are worried about adding an artistic features that serves no sound structural purpose. Stop wasting money for art! Use the money to build a better road instead!
Here is a novel idea; how about the government stop raiding the highway trust fund like they did with social security and medicare? Just think of all the extra $$ would suddenly become available.
If the politicians cannot stop the raiding then force them to donate fifty percent of their yearly salary to the highway trust fund and if we get another president like OBamBam or senator like Reid make them donate one hundred percent.
Problem solved!!!!!!!!!
Here in Pennsylvania, they recently (Jan 1, 2014) uncapped the oil company franchise tax. This tax, which isn’t supposed to effect the consumer, is on oil companies and their distributers. Our state legislature and governor said that this tax wouldn’t effect us as consumers at all, ever! However, almost immediately upon announcing that this tax would be uncapped in mid 2013, the oil distribution companies said they would be forced to pass this tax on to us, the motoring public. The state government of course denied this would happen. What happened Jan 1? Prices shot up almost .10 overnight. Now, as of my writing this reply, regular unleaded here in Western Pa is hovering around $3.70 a gallon, and diesel (which my pickup truck also runs on) is at $4.60 per gallon. WE CAN NOT AFFORD MORE TAXES ON FUEL!!!! I agree with Dave, our government needs to start spending what they have wisely. What’s the old saying? Socialism, eventually you run out of other peoples money.