Senate Tax Panel Advances Trust-Fund Bill; Floor Action Likely This Month
The Senate Finance Committee on July 10 easily reported a bill to the floor that would allow the transfer of $10.8 billion for a cash-strapped highway account through next spring.
The measure, sponsored by committee Chairman Ron Wyden (D-Ore.), advances to the full Senate, marking a significant step to guarantee federal dollars reach the states to pay for large-scale infrastructure projects. Transportation Secretary Anthony Foxx has told lawmakers the Highway Trust Fund is poised to fall short on cash in August, putting at risk hundreds of thousands of construction jobs.
The Senate bill would approve the transfer of $1 billion from the Leaking Underground Storage Tank Trust Fund and extend customs fees. It also would rely on the accounting practice known as pension smoothing as a source of funding. Pension smoothing allows companies with defined benefit retirement plans assume higher interest rates when calculating the amount of money needed to contribute for employees’ retirements.
Wyden had tweaked the legislation in an effort to ensure Republican backing. That included removing a provision that would have imposed higher fees on heavy trucks.
“The bipartisan mark contains important priorities for both sides: For example, tax-loophole closing to crack down on those who do not pay what they owe, and it squeezed more value out of current government spending, while setting aside funds to protect endangered pensions and the needs of workers in a tough, global economy,” Wyden said.
Earlier in the day, the House Ways and Means Committee reported to the floor by voice vote a similar bill.
