Congressman Introduces Gas Tax and VMT Legislation
On Wednesday, December 4th, Congressman Earl Blumenauer (D-OR) introduced two separate pieces of legislation that would address funding options for our nation’s transportation and infrastructure projects. The first bill, H.R. 3636, would amend the Internal Revenue Code of 1986 to increase the excise tax on gasoline, diesel, and kerosene fuels. Specifically, it would raise the gas tax to 33.4 cents per gallon a 15-cent increase by 2015. Additionally, it would juxtapose the tax rate to inflation so that its purchasing power does not decline over time. The second bill, H.R. 3638, would give states the pliancy to look into charging drivers by the mile. This is commonly known as the vehicle-miles-traveled tax.
Since passage of SAFETEA-LU, Congress has transferred over $50 billion from the General Fund to the Highway Trust Fund, in order to maintain solvency. The Congressional Budget Office (CBO) estimates after the end of Fiscal year 2014, annual General funds transfers of approximately $15 billion will be necessary in order to maintain current Highway Trust Fund spending levels.
TIA supports a fully funded multi-year transportation reauthorization bill and urges Congress to find solutions to maintain the solvency of the Highway Trust Fund.
