House and Senate Finally Agree Not to Close FAA but Fail to Address Taxes for Aviation and Bankrupt Highway Trust Fund

AutoInformed.com

Federal Highway Administration head Victor Mendez drives a Caterpillar grader in Tulsa, Oklahoma.

Last night the U.S. Senate went along with the House of Representatives and agreed not to shut down the FAA because its authority to impose excise taxes on airline tickets had expired. It was the 22nd extension of existing taxes since the underlying bill supporting the FAA expired four years ago, and it only lasts four months before the bickering over taxes starts anew.

The Senate also approved a six month extension to a surface transportation law without addressing the underlying problem of a bankrupt Highway Trust fund. Federal gasoline taxes that support the highway system, – 18.4 cents per gallon – have not been increased since 1993 as the population expands and road use and repair costs go up. (See Bankrupt Highway Trust Fund Could Send One Million More Taxpaying Workers to Unemployment Lines and Senate Dithers as Highway Trust Fund Goes Broke)

House Republicans closed parts of the FAA for two weeks this summer when they refused to extend the FAA’s taxing ability as they left Washington, DC for a month-long, taxpayer financed, vacation. Roughly 4,000 FAA workers were sent home and more than 200 airport construction and safety projects stopped, affecting tens of thousands of workers as the official – and understated – national unemployment rate was above 9%. As a result, the federal government lost about $400 million in airline ticket taxes because airlines no longer had a legal means to collect the fees, or the airlines that did collect the taxes simply pocketed the money.

The latest failure to put in place long term solutions for revenue problems came as a New York Times/CBS News poll showed Congressional approval ratings at a mere 12%, tying the abysmal record low recorded in October of 2008 as the ongoing financial crisis and Great Recession under Republican President Bush was unfolding with Congress doing nothing but posturing. 

A paltry 6% of registered voters now say that most members of Congress have earned re-election. And in what is shaping up to be an election firing for any incumbent, 84% agree that it’s time to give somebody else a chance – a historic low for the New York Times/CBS poll. Dissatisfaction with Congress runs deep across both parties; with more than 8 in 10 of both Republicans and Democrats saying it’s time to elect new representatives, according to the New York Times.

As it stands now, our country needs to invest about $2.2 trillion through 2014 just to maintain our national infrastructure in a state of good repair, according to an American Society of Civil Engineers Report issued when the President Obama assumed office, but neither party is willing to approve the taxes and user fees needed to do so. (See also DOT Announces $417.3 Million in Grants for Highway Projects )

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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