Yesterday Senate Environment and Public Works Chair Barbara Boxer proposed indexing the gasoline tax to inflation at a meeting of the Subcommittee on Transportation and Infrastructure, as compromise between the administration's resistance to gasoline tax increases, defended by Transportation Secretary Ray LaHood, and ranking member George Voinovich, who insists on a gas tax increase, which would be the first since 1993.
Legislators predict the need for investment of half a trillion dollars in highway and bridge construction over the next six years, and the gasoline tax will fall far short of raising that much money at present rates. LaHood said the administration had not considered indexing the tax to inflation, but would be open to evaluating the idea.
Indexing the tax to inflation would be good news for highway contractors, but bad news for others in the construction industry who would have to pay the tax but who get no direct benefit from the increased highway spending appropriations which would follow.
Legislators predict the need for investment of half a trillion dollars in highway and bridge construction over the next six years, and the gasoline tax will fall far short of raising that much money at present rates. LaHood said the administration had not considered indexing the tax to inflation, but would be open to evaluating the idea.
Indexing the tax to inflation would be good news for highway contractors, but bad news for others in the construction industry who would have to pay the tax but who get no direct benefit from the increased highway spending appropriations which would follow.
