GOP Congressman Proposes Fuel Tax Increase
Rep. Tom Rice (R-S.C.) introduced legislation that would raise federal fuel taxes by 10.1 cents per gallon, and index the new rate to inflation as a way to ensure the long-term solvency of the Highway Trust Fund.
The bill also would establish an income tax credit for individuals as a way to cover the additional taxes the average driver will have to pay annually.
鈥淥ur Highway Trust Fund isn鈥檛 funded and cannot be trusted,鈥 said Rice, a member of the Transportation and Infrastructure Committee. 鈥淭he uncertainty this trust fund creates stifles investment from states and industry, and makes American businesses less competitive.鈥
The bill 鈥渨ill 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. Additionally, improvements to the system will reduce accidents and improve safety,鈥 he added.
The trust fund is used to back many highway and transit projects, and its funding authority expires July 31.
