Sen. Wyden Proposes Increase to Truck Tax for Trust Fund Short-Term Fix
The chairman of the Senate Finance Committee offered a draft proposal June 24 that would increase a tax on heavy trucks as a means of keeping the federal highway account solvent through the end of the year.
A review of a Joint Committee on Taxation report offered by Chairman Ron Wyden, an Oregon Democrat, would increase a cap on vehicles exceeding 97,000 pounds from $550 to $1,100.
The plan would also propose certain reforms to banking regulations that overall could direct about $9 billion for the fund.
SHARE YOUR THOUGHTS: Tell us on Facebook
According to a senior Democratic aide, the legislative proposal is meant to shore up the Highway Trust Fund through the end of December. That would give transportation leaders on Capitol Hill time to craft and approve a long-term fix for the fund after this year’s midterm elections.
Wyden said he would call up his trust fund fix at a committee hearing June 26. (UPDATE: Senate panel drops truck tax, postpones vote)
“Strong transportation and infrastructure are critical to a growing and healthy American economy," Wyden said. "I hope to see the committee take decisive bipartisan action and send a clear message that stabilizing the Highway Trust Fund is a priority now.
"Moving the PATH Act forward is an imperative first step as the committee works together on a sustainable, long-term solution. Failure to act now could lead to a transportation shutdown, leaving our roads in disrepair and putting thousands of hard-working Americans out of their jobs.”
It is unclear whether it would be backed by Republicans, helping it to advance to the chamber. (UPDATE: Republican leader calls plan a "complete sham.")
Sean McNally, spokesman for American Trucking Associations, said the group is evaluating Wyden's plan, appreciates Wyden's "leadership on this critical issue and (we) urge Congress and the administration to guarantee the Trust Fund’s solvency in the near term, and work together to set the course for long-term, reliable funding.
“This spring, ATA’s members stepped forward with variety of options we believe Congress should be considering. While ATA supports numerous funding options, an increase in the fuel tax is well known to be the fairest, most reliable and efficient method of raising money for infrastructure investment,” McNally added.
The Department of Transportation estimates the trust fund will run out of money as early as late July. On June 20, Transportation Secretary Anthony Foxx told state departments of Transportation directors DOT may need to “delay some reimbursements” to their departments.
DOCUMENTS: Summary of provisions | Revenue estimate
