Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif.) is waiting for action on tax reform legislation before proceeding with the transportation bill. Sen. Boxer and Senate Finance Committee Chairman Max Baucus (D-Mont.) have said that tax changes are needed to fix the Highway Trust Fund. Proposals being discussed include increasing the federal gas tax or implementing another fee that would go towards highway programs.
Boxer made the comments at the American Highway Users Alliance-Volvo Transportation Summit.
The current transportation law expires after fiscal year 2014. Boxer said increased fuel economy and other factors will result in the Highway Trust Fund being depleted once the current law expires.
Boxer believes that replacing the current fee with a sales tax on fuel would be the best option, according to published reports. In a September hearing on the Highway Trust Fund, Boxer said she was leaning towards replacing the gas tax with a “fee” on fuel collected at the refinery level.
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