U.S. Transportation Secretary Anthony Foxx has proposed a bill as the House and Senate face deadlines to avoid what he claims is the economic uncertainty and job losses that would ensue if the Highway Trust Fund runs out of money this summer.
Politicians on both sides of the aisle have refused since 1993 to raise gasoline taxes of 18.4 cents per gallon and the 24.4-cent per gallon tax of diesel fuel, the trust fund’s major revenue sources. As a result, inflation has raised the cost of construction while revenue has lagged because Americans are driving less and vehicles are more fuel-efficient than ever. (Read Highway Trust Fund – Higher Taxes or Big Spending Cuts? and Snow Melts – Revealing Huge Roadway Potholes)
The so-called “Grow America act” is also a blatant political move that relies on tax increases on businesses to address the nation’s infrastructure deficit with a $302 billion, four-year transportation re-authorization proposal. Republicans, who want to keep cutting taxes on businesses and for the super wealthy, raising the deficit, are now in a tough spot. People are outraged over the condition of roads after a harsh winter, and jobs remain a problem in the U.S. economy.
The fact that Federal transportation investment is uncertain at this time – given the do-nothing Congress – sees states postponing or canceled transportation projects. In addition, the Obama Administration claims that without additional investment, problems with our nation’s infrastructure will cost businesses more than $1 trillion every year in lost sales.
The Highway Trust Fund, which provides most of the federal support for state transportation projects, will be out of money as early as August. In January, the Department of Transportation began posting a ticker online so the American people can track the remaining funds.
