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House Bill Would Up Fuel Tax By Over 10 Cents

July 10, 2015, by David Cullen - Also by this author

Photo: Jim Park
Photo: Jim Park

Aiming to address both the lack of funding for the Highway Trust Fund and the lack of trust in finding a long-term solution for that, Rep. Tim Rice (R-SC) has introduced a bill that would hike federal motor-fuel taxes by 10.1 cents per gallon and index the new rate to inflation.

To offset the rate increase the Highway Trust Fund Certainty Act (H.R. 2971) would put in a new income tax credit for individuals to help defray the higher cost of filing up. According to Rep. Rice, rather than raise revenue, the bill would move money from the general fund into the Highway Trust Fund, providing long-term HTF.  

Rice’s bill arrives just three weeks before the current funding authority for HTF runs out. In a statement, Rice argued that the revenue formula supporting the fund must be “modernized” lest it pile up a $13 billion deficit this year alone. 

Our Highway Trust Fund isn’t funded and cannot be trusted,” said Rice.  The uncertainty this trust fund creates stifles investment from states and industry, and makes American businesses less competitive.  After researching long-term solutions, I am proposing legislation to fix the Highway Trust Fund in the only way that makes sense, by adjusting the user fee. This will make certain that the fund is solvent and necessary investments in our infrastructure can be made.  Like states across the nation, South Carolina’s roads are in poor shape and we cannot afford a 34th short-term patch.

 H.R. 2971 will fund much-needed new roads on our congested highway system and will ensure that the condition of our highways will improve, encouraging investment and creating good paying jobs,” he added. “Additionally, improvements to the system will reduce accidents and improve safety.”

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  1. 1. Wade Haught [ July 13, 2015 @ 05:23AM ]

    Finally, someone in Congress had the guts to do the right thing to fix the Highway Trust Fund. Thank you, Representative Rice!

  2. 2. Tony Cecchi [ July 13, 2015 @ 12:01PM ]

    Does this bum of a legislator ever intend on getting re elected ? He should be a Democrat raising taxes like this. Cut the pork barrel legislation before you start piling on additional taxes to businesses and folks who are just able to make ends meet. That's more than a 50% increase.

  3. 3. Ranger [ July 15, 2015 @ 10:09AM ]

    Lets root out the inefficiencies before we add tax.
    lets get electric and alternative fueled vehicles to contribute something before adding more tax on the rest of us.( If the tax is to use and support the highways everything using it should be taxed)
    Lets stop supporting the rail system with our highway use taxes before you take more out of my daily needs.
    When I am driving along side a plug in car on the highway, that car is paying how much to use the highway? While I am in my Suburban with my 6 children( Fully supported by myself) I am paying around 50 cents a gallon to use the highway and some of that was used as a tax incentive to offset the development of the plug in electric car. &%!$#!*(#^@^%

  4. 4. Bud Hale [ July 30, 2015 @ 06:57AM ]

    Why not keep the 1 BILLION dollars that the President wants to give to his birthplace Kenya! As a matter of fact, quit sending BILLIONS of our Tax Dollars to Foreign Countries that HATE America and keep that money here to fix our problems!! That will go along way in fixing some of the problems that we have on our highways. The President and the Congress are not very smart and they are not doing what they were Elected to do. The people driving Electric Cars and other alternative fuel vehicles should have to pay to use the Highways as well. Wake Up America!!!

 

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