In The News

‘Freight bill’ would tax truck diesel 12 cents per gallon

By David Tanner, associate editor - Land Line
Posted Oct 5th 2010 3:07AM


U.S. Rep. Laura Richardson, D-CA, has introduced a bill that would increase diesel taxes for truckers by 12 cents per gallon. She says the money would create a new Office of Freight Policy and fund projects of national significance. OOIDA says the tax plan penalizes truckers and fails to call for a buy-in from other modes including rail.

The title of the legislation, HR6291, is The Freight is the Future Of Commerce in the United States Act, or Freight FOCUS Act.

Richardson said in a statement that the intent of her bill is to create a trust fund separate from the Highway Trust Fund to pay for significant projects, congestion relief and goods movement corridors. The fund would also “mitigate the effects of goods movement on the environment and public health,” she stated.

While these are noble efforts, the suggestion that diesel taxes start up a new trust fund, along with Richardson’s suggested transfer of $3 billion from general funds, is cause for OOIDA to throw cautionary flags.

For one thing, the proposed tax increase would not be guaranteed to stay with highways.

“We appreciate the congresswoman focusing on the freight issue. Discussion on this issue is long overdue,” OOIDA Director of Legislative Affairs Mike Joyce said.

“We would like to talk to the congresswoman and her staff about issues that raise concern with OOIDA membership. We would really like to see a full six-year highway authorization bill that could include freight. DOT and others have paid attention to other modes of transportation at the expense of freight, but the devils are always in the details of legislation like this,” Joyce added.

“There is already a revenue stream called the Highway Trust Fund; it should be dedicated to highways and freight mobility.”

The ATA has endorsed the bill. OOIDA would rather see Congress concentrate on a long-term transportation reauthorization bill that includes freight but does not specifically tax truckers to get there.

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