Skip to comments.U.S. business, labor leaders urge Congress to raise gas tax
Posted on 02/15/2014 3:05:58 PM PST by ilovesarah2012
WASHINGTON (Reuters) - U.S. business and labor leaders urged Congress on Wednesday to raise the federal gasoline tax to prevent a fund that pays for road and bridge projects from running out of money as early as September.
U.S. Chamber of Commerce President Thomas Donohue and AFL-CIO President Richard Trumka told a Senate Environment and Public Works Committee hearing that allowing the Highway Trust Fund to run dry would slow road building and other infrastructure projects and hurt the U.S. economy.
"These investments not only create jobs but spur economic growth, ensure our country's long-term economic global competitiveness and improve the quality of life of our citizens," said Trumka, who heads the largest U.S. labor organization.
The Transportation Department estimates that the Highway Trust Fund, which relies on an 18.4 cents-a-gallon tax on gasoline and 24.4 cents-a-gallon tax on diesel, could run out of money as early as September. The taxes were last raised in 1993.
(Excerpt) Read more at news.yahoo.com ...
First stop using the money to finance light rail and bike paths.
Raise the gas tax to pay someone $35 per hour to hold a sign on the side of the road while other workers make $50 per hour to put up $10 million electronic billboards over the road that flash out information like “Don’t Drink and Drive.”
Tom Donohue’s just full of good ideas:
A steady flow of talented, industrious immigrants can fuel a booming economy
Take the gas tax money collected today, and spend it on what it was initially created for.
If mass transit needs money, then collect taxes on top of mass transit fees, to pay for it.
If subways need to be expanded, let them carry the load.
If new busses are required, let the buss fee taxes carry the load.
Quit making automobile owners pay for everything. Quit creating new toll roads. Quit selling rights of way to foreign national concerns.
We built this nation and it’s assets, and now we have no right to use the items we paid for. And if they say we don’t have enough money, then let them prove they didn’t take any of our gas taxes to pay for their non-automobile mass transit adventures.
“Infrastructure improvement” is code for funneling money to the labor unions.
“First stop using the money to finance light rail and bike paths”
...and ever other damn thing (buses, rental bikes, etc) except building/maintaining roads.
What’s going to prevent the taxpayers from running out of money as early as September?
The Chamber of Commerce has lost any connection to the American people at this point. It wants to pick our pockets clean and give our jobs to invaders.
A pox on them.
I’m wondering what level of bribe money they’re bringing on their visits.
Or we could stop blowing transportation funds on rain gardens, bike paths, and failing public transportation systems.
Most of the revenue from the federal gasoline excise tax is paid into the Highway Trust Fund. The Fund uses the money for federal highway and bridge improvements. This is a useful tool for increasing employment in the construction sector, especially during the summer.
A significant amount of federal gas revenue goes into the General Fund, which helps reduce the annual federal budget deficit. For example, in 1990, a new tax of 2.5 cents per gallon was instituted on rail transportation. Proceeds went into the General Fund during the five-year duration of the program.
About a third of federal gas tax revenue in the Highway Trust Fund also goes toward subsidizing local public transit projects. The argument for a highway fund being used for mass transit is that it reduces the number of drivers on the roads. Jonathan Williams of the Tax Foundation, among others, has argued that this is an inefficient use of highway funds, although more efficient than many earmarks that federal gas tax revenue has been used for.
Get rid of insane union work rules and the “prevailing” wage EO...
Weren’t all those funds for “shovel-ready jobs” supposed to fix the roads?
What happened to all that $ from Obama stash?? shovel ready, stimulus aka slush fund.
What a joke & Donohue just as bad, if not worse than the RATs.
“Quit making automobile owners pay for everything.”
How about defunding the EPA and getting rid of the low-sulphur diesel requirement?
So we can get more crepe myrtles, junipers, and daffodils planted at all of the the interchanges???
pays for road and bridge projects from running out of money as early as September
Everyone reading this post will agree that the simple act of making each (and every employee) work a productive 8 hour day on the road or bridge will solve all problems. It doesn’t take 7 men to watch 1 dig a hole and it doesn’t take 25 inspectors to inspect the same thing and the most important is to hold the contractors fully liable fiscally for any failure to start a project until ALL plans are FINISHED and FUNDED at a non-negotiable (or subject to change) contract specification. Failure to comply penalizes the contractor, not the taxpayer.
My tagline has been around for many years and totally sums up ANY government project or contract.
I’m starting to see a pattern...
“Or we could stop blowing transportation funds on rain gardens, bike paths, and failing public transportation systems.”
The entire thing is basically an enormous slush fund, much like most of the rest of the Federal government funding.
Ignoring Taxed Enough Already at their own peril.
And if they do, it goes into the pockets of a bunch of union thugs, then back to the Democrat Party!
I thought that constitutionally indefensible federal stimulus funds were supposed to take care of things like this.
Winner of the follow the money contest.
Interesting. I wonder how much of that fund was used to build bike paths?
The health of the American economy should not depend on a bunch of union thugs stealing money out of the hardworking taxpayers’ pockets to build more roads. Isn’t all of that asphalt and vehicles driving on it a cause of global warming? Little Dick Trumka needs to go to jail for all of the money he and his kneecap busters are stealing from the pockets of hardworking Americans. What a punk.
Just where the hell do these A-holes think we’re supposed to get this money for the extra Gas Taxes?Obama has already destroyed the economy.Raised electrical rates skyhigh.
Now they want to kill the working man by raising his fuel taxes on the vehicle that takes him to work.These Statest thugs need to go.
I am all for it, but only if they put the money in a lock box. /s off
It’s the Chamber of one world CORPORATISTS now....they see America as a cash cow
President George H. W. Bush would make history in two ways in 1990: he would abandon his no new taxes pledge and he would designate a portion of the gas tax to be used for something other than roads. As part of the Omnibus Budget Reconciliation Act (OBRA 1990), the gas tax was increased by another five cents, bringing the total to 14 cents per gallon. Within a ten year span, the gas tax had increased, under Presidents Reagan and Bush by ten cents per gallon, a 350% increase.
The gas tax was also no longer a dedicated tax. The additional revenue was no longer going to highways and roads projects. Half of the increase in the gas tax under OBRA was earmarked for deficit reduction, a key worry in the 1990s.
1993 would bring another Omnibus Budget Reconciliation Act (OBRA 93), another President (Bill Clinton) and yet another increase in the gas tax. The gas tax was further increased by 4.3 cents with all of the increase targeted to reducing the federal deficit. Four years later, as part of the Taxpayer Relief Act of 1997, President Clinton would reverse course, earmarking the gas tax increase back to the Highway Trust Fund. That same year, the .1 increase to help pay for leaking underground storage tanks which had been allowed to expire was reinstated.
Over the years, the tax has looked like this (IRS report downloads as a pdf):
Fuel increases will increase costs to small businesses. How do small business pass on these increased costs? WTF, is this moron talking about.
Probably very little. It’s not transit or bike paths that is the problem, as much as it is under-table-graft and other projects that have nothing to do with transportation whatsoever.
Fascism, crony-capitalism — # ‘em.
Get fracking on Federal Lands, offshore drilling, pipeline freedom, etc. online, reduce Fed spending, control the borders and we’ll talk.
Chamber of Commerce even local would rent out their mothers for one more dime of anticipated income.
Keep bleeding the sheep.
Something like 30% is skimmed off the top before they even get around to wasting money on bike paths.
How about defunding EPA to get ethanol out of gasoline?
Doesn’t anyone understand the Wal Mart model? They make billions by making pennies per item.
Likewise, were taxes low enough not to be a big consideration in doing business, people and businesses would actually pay more of them.
In our local paper today, some moron was saying taxes should be 91% on top income earners as it was in ‘46. Does he actually believe anyone who made that sort of money paid that rate? Doesn’t he understand where loopholes come from, who put them there and why they exist? Doesn’t he realize the income tax was originally levied against the top 1%, but look who pays it now? Does he actually believe that anyone making 10 mil would pay over 9 mil in taxes and continue to work hard? Doesn’t “labor” n this article understand that THEY will be paying that tax and absolutely everything will go up in price to pay for it? Don’t they realize businesses are merely tax collectors not payers; we are?
These people are out of their fn minds.
I heard today that the EPA is funded directly and secretly and that Congress has no control over this unique agency.
They built a dog run in my neighborhood. Nobody uses it. But it’sreally nice. Big. Concrete pad, fences, gates dog poo bag dispensers. Damn shame it is crumbling from lack of maintenance and no use. But it’s pretty. Has landscape features around it. I wish somebody would use it. Maybe to race remote control cars? Something.
The government forced auto makers to come up with more fuel-efficient vehicles, thus requiring less gasoline, and therefore less gas tax revenue. Now they want to raise the gas tax. Circular logic at its best.
the very LAST thing we need is USA is higher taxes!!!
(find out where Obama stashed the last 7 TRILLION dollars of our money and use some of that for your little projects, guys! Remember, much of that money was promised to be for road building... your nice little special interest area...
so you didn’t get the money you expected, you were promised...and now your solution is to raise all our taxes even further? NO WAY! Go find the last 7 Trillion, ask the White House where its hidden maybe....SwitZerland? some little Caribbean atoll private bank?....it didn’t get spent on anything that benefited Americans, that’s for sure, so go find all that money...its obviously stashed somewhere...for your road projects!)
I always suspected that Thomas Donohue was a seditionist fascist traitor, and today that suspicion has vanished.
900 Billion in shovel ready project money, trillion dollar deficits and now they say there is no money for roads. Where is my pitchfork.
We are past pitchforks. Time for the heavy artillery.