With a shortfall of funds for highway construction and maintenance, House Resolution 3636 (a.k.a., The Update, Promote, and Develop America's Transportation Essentials or UPDATE Act), would jack up fuel taxes by 15 cents a gallon over three years. UPDATE is the hope of Rep. Earl Blumenauer (D-Ore.) and would boost federal taxes up to 33.4 cents a gallon on gasoline and to 42.8 cents on diesel.
Here's the problem: Taxes on automotive fuel are directed to the Highway Trust Fund, which primarily works at road construction and other transportation infrastructure. Federal taxes on gas and diesel haven't been raised in several years, and inflation has taken a cut in the buying power of tax revenues. Now add in the success of the push for greater fuel efficiency in cars and trucks. Great fuel economy spells less fuel purchased, and that much less fuel tax collected.
UPDATE now sits in a House committee waiting further action. So far, nobody in Congress wants to be a cosponsor, considering how unpopular the notion of more taxes is to the average American voter. But that doesn't mean that the bill doesn't have its friends. Enter the ARC, or American Recreation Coalition. The ARC sees the potential for driving some portion of tax revenue into the forests and parks around the country. 'Earmark some of that money,' seems to be ARC's gambit. Called a "Penny for Parks," ARC sees the possibility of taking some of that new revenue stream and helping out with roads and bridges in national parks and forests.
Since RVers typically spend more per mile traveled than the average American driver, it's easy to see the wallet affect on RVers should the bill pass. One might imagine that the RV industry would see a hike in gas taxes affecting their customers in an adverse way, and hence, not exactly favoring UPDATE. But here's a partial list of bill supporter ARC's membership:
Recreation Vehicle Industry Association, Recreation Vehicle Dealers Association, Good Sam Club, Family Motor Coach Association, and Kampgrounds of America. All of these are "sustaining" members. Other members include Coachman Industries, Jayco, Inc., and Thor Industries.
Granted, in the dollar-tight world of federal funding, tough decisions do have to be made. But it is interesting to see just who's hiding in the woodwork.
8 comments:
Wake up people. Aren't you tired of paying for Congress lack of spending control. This increase will really hurt all of us "fuel users". Go to : https://www.govtrack.us/congress/bills/113/hr3636
and follow this bill and notify committee members and your representatives that we don't need any more taxes, just spending restraint.
But what if the "spending restraint" means cutting back on construction and maintenance of highways? I'm not in favor of more taxes, but I am in favor of good roads. It's a conundrum; I suppose it comes down to what the money is going to be spent on.
Maybe we all should drop our memberships in these pro tax organizations, I belong to two of them (Good Sam and FMCA). May need the money for fuel. It's amazing how they force everyone towards fuel economy then punish you for doing it.
There's no free lunch, people. If you want good roads, you have to pay for them. If you don't, you will be paying for tires, springs, frequent realignments, etc. The biggest problem with the gas tax is it should be percent instead of cents per gallon so the revenue would go up with petroleum prices, like highway construction and maintenance costs.
To all the people who are both sides of the fence a big YES, I do understand both sides and both are correct in their point BUT, here is my take. If the money went to highways great but it never works this way when some politician gets their way! It will be spent on some other pork project and to make matters worse is the fact of the 42 cents for diesel how dose over 80% of all goods make it to market? So not only will you pay at the pump but all other goods and items you purchase!! Truckers in the last 6 yrs. have been killed with all the price increases and it all cost ALL OF US big dollars in how we live our lives. So it is not just a gallon of fuel it is much bigger!!
Just what we need to do give them more money.
Corpus Christi, TX neglected it’s streets for decades because of the anti-taxing idealogy and mentality of the politicians. Well, now it will cost around a billion dollars for repairs. Residents are now charges a monthly “fee” on their utility bills (note: not called a “tax”) for the repairs. Who wants additional taxes? But learn for Corpus Christi – the piper will be paid one day regardless, and a heck of a lot more than if taken cared of in a timely, proper manner.
Actually the highway funds have been diverted to other projects like green initiatives and the bridge to nowhere. They are not being spent on the roads.
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