Blumenauer Seeks 15-Cent Diesel Tax Increase
WASHINGTON — An Oregon congressman has introduced legislation that would nearly double federal taxes on diesel and gasoline to fill a widening shortfall in the federal government’s main source of transportation funding.
Rep. Earl Blumenauer (D) on Dec. 4 unveiled the Update, Promote and Develop America’s Transportation Essentials Act of 2013, which would gradually raise the 24.4-cent-per-gallon diesel tax to 39.4 cents by 2016. It would increase the gasoline tax by 18.4 cents to 33.4 cents. After 2016, fuel taxes would be indexed to inflation.
Blumenauer said Congress no longer can afford to wait to maintain solvency for the Highway Trust Fund, which pays for most of the federal government’s investment in roads, bridges and transit. Increasing federal fuel taxes also was recommended by the Simpson-Bowles deficit reduction plan.
“For the last two decades, we’ve been in a state of slow decline. Frankly, there has been a bipartisan failure of will,” Blumenauer said during a news conference where he was joined by representatives from trucking, business, labor, transit and road builder groups.
“For all the talk of the budget deficit, we’re facing an infrastructure deficit.”
American Trucking Associations has long supported an increase in fuel taxes to keep up with the nation’s infrastructure needs and ensure freight moves efficiently.
“Our support for raising the fuel tax should clearly demonstrate just how critical good roads are for moving freight, commuters, vacationers and shoppers,” said Mary Phillips, ATA senior vice president of legislative affairs.
Congress last raised the fuel tax by 4 cents in 1993, and its purchasing power has diminished. Inflation, more efficient vehicles on the road and people driving less have contributed to a gap in the Highway Trust Fund. Fuel taxes bring in about $38 billion.
