Highway crisis looms as soon as August, US warns

Published on NewsOK Modified: July 1, 2014 at 2:52 pm •  Published: July 1, 2014
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The most obvious solution is to raise fuel taxes, which is what several blue-ribbon commissions have recommended and business groups like the U.S. Chamber of Commerce and the American Trucking Associations have urged. But neither political party nor the White House wants to get out front on a proposal to raise taxes in an election year. Foxx didn't rule out Obama signing legislation that raises the gas tax, but he indicated the administration doesn't believe there is enough support in Congress to pass a gas tax increase.

"We have said if Congress acts on something, we'll keep an open mind," Foxx said.

Instead, Obama is pushing a plan to close tax loopholes and use the revenue to pay for increased transportation spending for the next four years.

"We have a proposal we think is politically acceptable," Foxx said.

House Ways and Means Committee Chairman Dave Camp, R-Michigan, floated a similar proposal in April. But many Republicans say they'd rather offset increases in transportation spending with cuts to other government programs rather than tax increases. And many lawmakers say they want to continue to the trust fund's "user pays" principle by raising money from people who most use the roads, if not through a gas tax then some other means.

Nearly a dozen proposals to address the problem have been floated in Congress, but none have gained traction. House Republicans recently proposed a short-term patch based on savings associated with ending Saturday mail delivery by the postal service. The plan died a quick death when it became clear that many GOP lawmakers wouldn't support it.

Senate Finance Committee Chairman Ron Wyden, D-Ore., offered a plan last week to keep transportation aid flowing for another six months. The plan, which included raising taxes on large trucks, ran into opposition from Republican senators. He dropped the truck tax, but Republicans say they want more spending cuts as part of the package. Further action is expected when Congress returns to work from a Fourth of July break.

In the House, Camp has said he will offer a new plan to shore up the trust fund next week.

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Associated Press writer Nedra Pickler contributed to this report.

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Follow Joan Lowy on Twitter at http://www.twitter.com/AP_Joan_Lowy