US Chamber of Commerce supports gas tax increase

But group demands reforms

Steve Hawley, Jul 16, 09.

The US Chamber of Commerce has come out in support of higher gas taxes in an opinion piece in Roll Call (via Transportation for America), provided that the tax increase comes with some reforms.

The Federal Highway Trust Fund is expected to run out of money in August, more than a month before the current transportation bill expires, forcing Congress to step in. The fund is financed by gas tax revenues, which have not been increased since 1993 and have fallen in recent years as Americans drive less and buy more fuel-efficient cars.

Janet Kavinoky, director of transportation infrastructure at the US Chamber of Commerce, writes:

The simplest, most straightforward way to find the money is through a modest increase in gasoline and diesel taxes. The US Chamber of Commerce has never been accused of being a strong proponent of any kind of tax increases. But taxes paid on gasoline and diesel are different — they are user fees.

Motorists would get a tremendous return on their investment, including: a reduction of congestion that robs Americans of their precious time and mobility; fewer crashes due to poor road conditions; lower prices on almost every imaginable product due to smaller shipping costs; and confidence that America can compete and win in a worldwide economy.

If Americans are going to be asked to pay a little extra at the pump, they have a right to expect some things in return. Namely, that no money would go to wasteful earmarks, investments would go to projects that advance national interests, no revenues would be diverted to non-infrastructure projects, and we would put an end to red tape that endlessly delays and raises project costs. In fact, the chamber insists on them — we will not support a gas tax increase without these assurances.

Other alternatives have also been discussed, including a vehicle-miles fee proposed by Rep. James Oberstar of Minnesota, which would replace the federal gas tax. Rep. Oberstar chairs the House Transportation and Infrastructure Committee. However, many legislators have expressed opposition to increasing transportation taxes in the middle of a recession.

The US Chamber of Commerce has also started an aggressive lobbying campaign in support of a new transportation bill, according to The Hill.

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