Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: https://read.dmtmag.com/i/251785
A bill has been introduced in the U.S. House of Representatives that would, if it becomes law, phase in a 15-cent per gallon increase to the tax on gasoline and diesel fuel over the next three years. U.S. Rep Earl Blumenauer (D-Ore.) introduced the bill Dec. 3 and the bill was sent to committee. Blumenauer, out of Oregon's third district, is a former member of the House Transportation and Infrastructure Committee and now serves on the Ways and Means Committee, which will have jurisdiction over the bill, H.R. 3636, also known as the UPDATE Act. e bill would increase the fuel tax at the pump by 15 cents over a three year period, beginning with an 8-cent increase in 2014, followed by a 4-cent increase in 2015 and a 3-cent hike in 2016. It would boost the current federal gasoline tax from 18.4 cents per gallon to 33.4 cents per gallon and the diesel levy from 24.4 cents to 39.4 cents. e bill would also index the tax to the cost of living until 2025, at which time the tax would repeal itself in anticipation of a vehicle-mile tax. "e gas tax hasn't been increased since the beginning of the Clinton administration," Blumenauer said. "Today, with inflation and increased fuel efficiency for vehicles, the average motorist is paying about half as much per mile as they did in 1993. It's time for Congress to act." Blumenauer said the tax increase would be used to pay for more investment in roads and bridges. His bill drew support from leaders in the transportation industry, including American Trucking Associations, as well as leaders in labor, commerce and construction. "Congressman Blumenauer's UPDATE Act provides a much needed boost to our nation's surface transportation infrastructure," United Parcel Service Global Public Affairs President Laura Lane said. "UPS alone travels more than 2.3 billion miles on America's roads each year, connecting businesses, consumers and individuals in every state. Increasing the federal fuels tax is a long-overdue proposal to provide the dedicated funding needed to maintain our highways, intermodal connections and other related infrastructure projects. Investing in and growing our nation's transportation infrastructure is essential to remaining competitive in today's increasingly global economy." Blumenauer's proposed increase to the fuel tax would raise approximately $170 billion for highway infrastructure over the 10 year period. e current Highway Trust Fund requires approximately $15 billion per year, plus current gas tax receipts. e bill also has the backing of the Amalgamated Transit Union, Getting America to Work Coalition, the American Council of engineering Companies, the Highways Materials Group, American Society of Civil Engineers, Laborers' International Union of North America, Associated GAS & TAXES BY LARRY HURRLE, EDITOR 22 IT MAGAZINE V o l . 8 , N o . 1