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Proposed bill would raise federal gas tax by $0.15 for highway funding

Posted By Amanda Bayhi On December 5, 2013 @ 5:39 pm In Featured Articles,News & Analysis | 4 Comments

shutterstock_111419282 [1]

Rep. Earl Blumenauer (D-Ore.) introduced into the House on Wednesday a bill that would nearly double federal fuel taxes as a means of funding highways [2], according to a report from our sister site Overdrive [3].

Blumenauer said the $0.15-per-gallon increase would be a short-term option to make up for shortfalls in the dwindling Highway Trust Fund (HTF) — which is projected to have a negative balance by 2015 [4] — rather than a long-term funding solution.

The bill, known as the UPDATE Act, would begin phasing in fuel tax increases next year, index the tax to inflation and replace the gas tax with a long-term solution by 2024.

Overdrive points out that the ideas in the bill come from recommendations by the Simpson-Bowles report, the National Surface Transportation Policy and Revenue Commission and the National Surface Transportation Financing Commission.

According to Politico’s “Morning Transportation [5]” on Thursday, the UPDATE Act is garnering support from groups such as the U.S. Chamber, AAA, the American Trucking Association (ATA) and unions.

And though the bill lacks a cosponsor, Politico notes that a GOP member has anonymously confirmed consideration of cosponsoring.

Politico adds that Blumenauer has a separate bill that would allow for a future VMT program. However, his current focus is on kick-starting reauthorization conversations.

Proposed bill would raise federal gas tax by $0.15 for highway funding

Posted By Amanda Bayhi On December 5, 2013 @ 5:39 pm In Featured Articles,News & Analysis | 1 Comment

shutterstock_111419282 [1]

Rep. Earl Blumenauer (D-Ore.) introduced into the House on Wednesday a bill that would nearly double federal fuel taxes as a means of funding highways [2], according to a report from our sister site Overdrive [3].

Blumenauer said the $0.15-per-gallon increase would be a short-term option to make up for shortfalls in the dwindling Highway Trust Fund (HTF) — which is projected to have a negative balance by 2015 [4] — rather than a long-term funding solution.

The bill, known as the UPDATE Act, would begin phasing in fuel tax increases next year, index the tax to inflation and replace the gas tax with a long-term solution by 2024.

Overdrive points out that the ideas in the bill come from recommendations by the Simpson-Bowles report, the National Surface Transportation Policy and Revenue Commission and the National Surface Transportation Financing Commission.

According to Politico’s “Morning Transportation [5]” on Thursday, the UPDATE Act is garnering support from groups such as the U.S. Chamber, AAA, the American Trucking Association (ATA) and unions.

And though the bill lacks a cosponsor, Politico notes that a GOP member has anonymously confirmed consideration of cosponsoring.

Politico adds that Blumenauer has a separate bill that would allow for a future VMT program. However, his current focus is on kick-starting reauthorization conversations.


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URLs in this post:

[1] Image: http://www.equipmentworld.com/files/2013/12/shutterstock_111419282.jpg

[2] funding highways: http://www.equipmentworld.com/the-pros-and-cons-of-transportation-funding-options/

[3] a report from our sister site Overdrive: http://www.overdriveonline.com/house-introduces-bill-that-would-raise-fuel-tax-15-cents-to-fund-highways/

[4] projected to have a negative balance by 2015: http://www.equipmentworld.com/could-alternate-energy-sources-help-solve-our-funding-problem/

[5] Morning Transportation: http://www.politico.com/morningtransportation/

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