The House and Senate tax writing committees both held hearings this week to examine options for the long-term solvency of the Highway Trust Fund. As a backdrop to the hearings, AGC CEO Stephen Sandherr joined with Oregon Congressman Earl Blumenauer and other association leaders during a media event calling on Congress to raise the gas tax to pay for a new, long-term surface transportation bill.
Unfortunately, House Ways & Means Chairman Paul Ryan (R-Wisc.) does not share AGC’s support for increasing the gas tax. At the beginning of his committee’s hearing, Chairman Ryan made it clear that he wants to address the pending insolvency of the Highway Trust Fund without entertaining increasing the federal tax on gasoline and diesel fuel. The only members of the committee who actually advocated for an increase in the motor fuels tax were Representatives Jim Renacci (R-Ohio) and Earl Blumenauer (D-Ore.), both of whom have introduced legislation to increase fuel taxes. The American Trucking Association’s witness also called for an increase in the motor fuels tax. Other options to address the revenue need – which the Congressional Budget Office predicted at the hearing would total $125 billion over 10 years – that were discussed included a vehicle miles traveled tax, a fee on increased oil and gas drilling on federal lands and the revenue from a mandatory tax on U.S. corporate overseas earning. None of these alternatives will be able to address the immediate shortfall the trust fund is facing at the end of July. The Select Revenue Subcommittee will hold a hearing next week to discuss repatriation as an option for addressing infrastructure needs.
The Senate Finance Committee held their hearing today. In his opening comments Chairman Orrin Hatch (R-Utah) said that his goal as chairman is to find a way to fund a long-term infrastructure bill. However, he also said, “While I know the idea has some support, I don’t think a massive increase in the gas tax could be enacted into law.” Former Transportation Secretary pointed out the need for increased investment in transportation infrastructure and called for increasing the gas tax. In contrast, the Heritage Foundation witness downplayed the need for investment and said that rather than raise the federal gas tax, a better policy would be to phase down the federal tax and let states pay for their own road projects.
For more information, please contact Sean O’Neill at oneills@agc.org or (202) 547-8892. Return to Top