The Gas Tax
Mr. Speaker, for as long as I have been in Congress, both parties and two successive administrations have danced around the issue of our infrastructure deficit. For all the attention to the various fiscal cliffs, the looming infrastructure…
Mr. Speaker, for as long as I have been in Congress, both parties and two successive administrations have danced around the issue of our infrastructure deficit. For all the attention to the various fiscal cliffs, the looming infrastructure deficit is every bit as critical.
For two centuries, infrastructure was a bipartisan issue, from Lincoln, with the transcontinental railroad, to Democrats and Republicans coming together to launch the interstate freeway system signed into law by President Eisenhower. Subsequent road, transit and water investments helped fuel our economy and tie the Nation together.
More recently, the failure to address long-term funding has also been bipartisan. The Bush administration ignored strong recommendations from their own private sector experts that they empanelled to give advice.
Although the Obama administration did request and employ some modest funding in the Recovery Act and has proposed an infrastructure bank and talked extensively and, I think, sincerely about the need for investment, what has been lacking has been a specific, concrete proposal from either party to address infrastructure financing in America.
While the political maneuvering has occurred here in Washington, the gap in the highway trust fund has been growing, and conditions of our roads, bridges, and transit systems have been deteriorating. This puts America at a competitive disadvantage, complicates the movement of goods and people, and contributes to congestion and pollution.
At the same time the needs grow, the resources are in significant decline. The gas tax has not been increased since the Clinton administration 20 years ago. The future prospects are even worse. Demands are increasing and deferred maintenance takes its toll while we watch the bottom fall out of the highway trust fund.
We have seen a slowdown in revenue due to the near collapse of the economy, a shift in driving patterns while people, especially young people, drive less, and, of course there is improved fuel efficiency. It is scheduled to further reduce gas consumption dramatically with improved mileage for conventional vehicles, to say nothing of hybrids, plug-in hybrids, and electric vehicles.
It is time for Congress to act. We have seen our partners at the State level increase transportation funding in 13 States, but they need Congress to act to maintain that partnership.
There is a large coalition that stands ready to support Congress. U.S. chamber, the national AFL-CIO, building trades, trucking industry, numerous associations of small and medium businesses, local chambers of commerce, local government, professional organizations, bicyclists, the coalition is broad and persuasive requesting Congress to tax them.
Any resources would have a powerful effect on the economy. The relatively small amount in the Recovery Act for infrastructure created many jobs because there is a strong multiplier effect, about 36,000 jobs for each billion dollars invested. And these are family-wage jobs all across America that aren't going to be outsourced overseas.
In less than a year, the transportation bill expires, and absent congressional action, we face a precipitous drop in transportation funding next year and a reduction of 30 percent overall for the next decade.
It doesn't need to be this way. I am proposing we implement the three-step, 15-cent-per-gallon tax increase that was part of the Simpson-Bowles deficit reduction proposal. Communities and industry need certainty, especially for larger projects that are multistate and multiyear.
And this should be the last Federal gas tax increase. Over the next 10 years, we need to replace funding for transportation that is based on gallons of fuel consumed, which is going to be declining, with something more sustainable, a reasonable adjustment now and a permanent fix in the future, so we can stop this dance of avoidance.
We will find broad support for this form of user fee, which, historically, has been acceptable to Republicans as well, including Ronald Reagan, who increased the gas tax a nickel a gallon back when that was real money in 1982, and he established the mass transit trust fund account.
Let's address the infrastructure deficit, stabilizing transportation funding, and help revitalize and enhance America's all-too-slow economic recovery. The time is now.