Friday, December 19, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Senators propose 12-cent gas tax increase

By
From page B6 | June 19, 2014 |

WASHINGTON — Two senators unveiled a bipartisan plan Wednesday to raise federal gasoline and diesel taxes for the first time in more than two decades, pitching the proposal as a solution to Congress’ struggle to pay for highway and transit programs.

The plan offered by Sens. Chris Murphy, D-Conn., and Bob Corker, R-Tenn., would raise the 18.4-cents-a-gallon federal gas tax and 24.4-cents-a- gallon diesel tax each by 12 cents over the next two years, and then index the taxes to keep pace with inflation. The increase would be applied in two increments of 6 cents each.

The plan also calls for offsetting the tax increases with other taxes cuts. Senators said that could be done by permanently extending six of 50 federal tax breaks that expired this year, but they indicated they would be open to other suggestions for offsets.

The plan was immediately embraced by industry and transportation advocacy groups seeking a long-term means to keep the federal Highway Trust Fund solvent. However, it would require a lot of heavy lifting from Congress in the politically-charged atmosphere of an election year to pass such a plan before late August, when the trust fund is forecast to go broke.

Senate Finance Committee Chairman Ron Wyden, D-Ore., has indicated he’s looking for means to shore up the fund for about the next six months while working on a long-term plan. That would move debate on a gas tax increase or some other revenue-raising scheme to after the mid-term election in November.

Revenue from gas taxes and other transportation user fees that for decades hasn’t kept pace with promised federal transportation aid promised to states. People are driving less per capita and cars are more fuel efficient, keeping revenues fairly flat. At the same time, the cost of construction has increased, and nation’s infrastructure is aging, creating greater demand for new and rebuilt roads and bridges.

The last time federal gas and diesel taxes were increased was in 1993 as part of plan to reduce the federal budget deficit. Republicans castigated Democrats for the tax increase, and it was a factor in the GOP takeover of the House and Senate the following year.

Since then, lawmakers have been reluctant to raise fuel taxes despite calls from several blue-ribbon commissions to do so.

“For too long, Congress has shied away from taking serious action to update our country’s aging infrastructure,” Murphy said in a statement. “We’re currently facing a transportation crisis that will only get worse if we don’t take bold action to fund the Highway Trust Fund.”

Sen. Tom Carper, D-Delaware, who attempted to increase the gas tax increase in 2010, said he was glad to see the idea “gaining more bipartisan support.”

Since 2008, Congress has repeatedly dipped into the general treasury for money to keep the trust fund solvent, sometimes waiting until the government was the verge of slowing down payments to states. States have complained that the uncertainty over whether federal aid will be forthcoming has limited their ability to commit to larger projects that take years to plan and construct.

“Congress should be embarrassed that it has played chicken with the Highway Trust Fund and allowed it to become one of the largest budgeting failures in the federal government,” Corker said.

The six expired tax breaks identified by the senators as possible offsets for fuel tax increases are a research and development tax credit, certain expensing by small businesses, the state and local sales tax deduction, increasing employer-provided transit benefits to the same level as parking benefits, a deduction for spending by teachers on classroom supplies, and an increased deduction for land conservation and easement donations.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Articles

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

     
    Sondheim’s ‘Woods’ holiday showcase for Missouri Street Theatre

    By Amy Maginnis-Honey | From Page: B1 | Gallery

     
    Groundbreakings, ribbon-cuttings play role in civic life

    By Barry Eberling | From Page: A1 | Gallery

    Frankye Kelly ready to spread holiday cheer

    By Amy Maginnis-Honey | From Page: B1

     
    Celebrate the magic of Christmas

    By Tony Wade | From Page: A2, 2 Comments

     
    Santas have busy week at schools

    By Susan Hiland | From Page: A3, 1 Comment

     
    Safe streets task force work nets 3

    By Ryan McCarthy | From Page: A3

     
     
    Solano College approves officers, meeting schedule

    By Susan Winlow | From Page: A4

    Longtime Suisun harbor master to retire

    By Ian Thompson | From Page: A4

     
     
    Fairfield police log: Dec. 17, 2014

    By Susan Hiland | From Page: A12

     
    Suisun City police log: Dec. 17, 2014

    By Susan Hiland | From Page: A12, 1 Comment

    Police arrest 2nd suspect in Fairfield credit union robbery

    By Ryan McCarthy | From Page: A12 | Gallery

     
    .

    US / World

    Spy’s parents search for son after Cuba-US deal

    By The Associated Press | From Page: A1

     
    Hope and some fear in Cuba amid thaw with US

    By The Associated Press | From Page: A1

    Next steps on Cuba: Normalizing could take awhile

    By The Associated Press | From Page: A1

     
    Sony hacking fallout puts all companies on alert

    By The Associated Press | From Page: A1

    Sony film took aim at North Korea’s biggest taboo

    By The Associated Press | From Page: A1, 1 Comment

     
    Timeline of the Sony Pictures Entertainment hack

    By The Associated Press | From Page: A1

    Digital dilemma: How will US respond to Sony hack?

    By The Associated Press | From Page: A1

     
     
    Local emergencies in Northern California counties after rain

    By The Associated Press | From Page: A5

    California’s top utility regulator defends record

    By The Associated Press | From Page: A5

     
    ‘Pretty horrible’ scene; car slams into crowd

    By The Associated Press | From Page: A5

     
    Police: Drunk man shot while entering wrong house

    By The Associated Press | From Page: A5, 2 Comments

    Tsarnaev appears in court for 1st time since 2013

    By The Associated Press | From Page: A6

     
    President signs legislation ending Nazi benefit checks

    By The Associated Press | From Page: A7

    2 states challenge Colorado marijuana legalization

    By The Associated Press | From Page: A8, 1 Comment

     
    ‘Prison Houdini’ set to make his 1st legal escape

    By The Associated Press | From Page: A8

    Top Islamic militants killed; more US troops going to Iraq

    By The Associated Press | From Page: A8

     
    Feds sue NYC over Rikers Island jail violence

    By The Associated Press | From Page: A8

    Russian sailors leaving France without warship

    By The Associated Press | From Page: A9, 1 Comment

     
    Putin: West wants to defang, declaw Russian bear

    By The Associated Press | From Page: A10

    European court rules obesity can be a disability

    By The Associated Press | From Page: A13

     
    Suspected Islamic extremists kidnap 185 in Nigeria

    By The Associated Press | From Page: A13, 2 Comments

    .

    Opinion

    Another look at school bonds

    By George Guynn Jr. | From Page: A11, 2 Comments

     
    Editorial Cartoon: Dec. 19, 2014

    By Daily Republic Syndicated Content | From Page: A11

    News of the day strikes a chord

    By Bud Stevenson | From Page: A11, 2 Comments

     
     
    .

    Living

    Today in History: Dec. 19, 2014

    By The Associated Press | From Page: A2, 1 Comment

     
    Community Calendar: Dec. 19, 2014

    By Susan Hiland | From Page: A2

    Horoscopes: Dec. 19, 2014

    By Holiday Mathis | From Page: D8

     
    Should I use Child Protective Services threat to get back rent?

    By Kathy Mitchell and Marcy Sugar | From Page: D8

    .

    Entertainment

    Week in preview Dec. 19-25, 2014

    By Amy Maginnis-Honey | From Page: B1

     
    Sweet ‘Night at the Museum’ bids farewell to Robin Williams

    By The Associated Press | From Page: B2

    Review: ‘The Hobbit’ wraps with a Middle Earth melee

    By Jake Coyle | From Page: B2 | Gallery

     
    Craig Ferguson to end 10 years as host of ‘Late Late Show’

    By The Associated Press | From Page: B3

    Eric Idle brings ‘Not the Messiah’ to Carnegie Hall

    By The Associated Press | From Page: B3

     
    Entertainment calendar Dec. 19, 2014

    By Susan Hiland | From Page: B4

    .

    Sports

    A’s trade All-Star catcher Derek Norris to Padres

    By The Associated Press | From Page: B7

     
    Warriors beat Thunder 114-109 after Durant injury

    By The Associated Press | From Page: B7

     
    A’s acquire lefty De La Rosa from Arizona for cash

    By The Associated Press | From Page: B7

    Raiders defense depleted by injuries

    By The Associated Press | From Page: B7

     
    49ers’ Harbaugh mum on reported offer from Michigan

    By The Associated Press | From Page: B7

    49ers’ Aldon Smith hopes to build off tough year

    By The Associated Press | From Page: B7

     
    Column: Thaw in US-Cuba relations warms up MLB

    By Jim Litke | From Page: B8

    Rivera: Newton ‘probably’ will start vs. Browns

    By The Associated Press | From Page: B8

     
    Bears bench QB Jay Cutler for Clausen

    By The Associated Press | From Page: B8

    ‘Hands Up’ players to attend Ferguson Christmas party

    By The Associated Press | From Page: B8

     
    Celtics trade Rondo to Mavericks

    By The Associated Press | From Page: B8

    Rodriguez boys open Les Curry Tournament with victory

    By Daily Republic staff | From Page: B8

     
    39 bowl games and a reason to watch every one

    By The Associated Press | From Page: B8

    Signups for Friday, Dec. 19, 2014

    By Paul Farmer | From Page: B9

     
    This date in sports history for Friday, Dec. 19, 2014

    By The Associated Press | From Page: B11

    Sports on TV/Local sports for Friday, Dec. 19, 2014

    By Paul Farmer | From Page: B11

     
    .

    Business

    Roomiest Subaru Legacy debuts for 2015

    By Ann M. Job | From Page: C1

     
    Dow industrials have their best day in three years

    By The Associated Press | From Page: B6

    Ford expands drivers air bag recall nationwide

    By The Associated Press | From Page: B6

     
    Constantly changing online prices stump shoppers

    By The Associated Press | From Page: B6

    .

    Obituaries

    Lisa Dee McHughes

    By Nancy Green | From Page: A4

     
    Dominic C. Scolaro

    By Nancy Green | From Page: A4

    Ernest “Ernie” Moretti

    By Nancy Green | From Page: A4

     
    Travis Curt Price

    By Susan Hiland | From Page: A4, 1 Comment

    Jennie Ponce Reyes

    By Nancy Green | From Page: A4

     
    Patricia “Pat” Anne Stringfield-Pierre

    By Nancy Green | From Page: A4

    .

    Comics