AGC Release Supporting the Federal Motor Fuels Taxes
AGC Release Supporting the Federal Motor Fuels Taxes
- Institutional AuthorsAssociated General Contractors of America
- Code Sections
- Subject Area/Tax Topics
- Index Termsbudget, federallegislation, taxfuel, dieselgasoline tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-7667 (1 original page)
- Tax Analysts Electronic Citation2000 TNT 51-23
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CONSTRUCTION NEWS
THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA
March 14, 2000
[1] WASHINGTON -- The Associated General Contractors of America (AGC) formally confirmed its opposition to efforts in Congress to reduce or eliminate the federal taxes on diesel fuel and gasoline. AGC's Board of Directors adopted a resolution (attached) at the group's 81st Annual Convention in Seattle urging Congress to reject any and all proposals to alter the Federal motor fuel taxes from their current levels.
[2] "It is not good public policy to consider reducing or eliminating the federal motor fuel taxes at a time when every community around the country is facing a huge backlog of road improvement needs that will save time and increase motor safety," said Stephen E. Sandherr, AGC executive vice president and CEO. "The minor savings to the individual motorist that would come from a reduction in the gas tax does not justify this major cut in transportation investment," added Sandherr.
[3] The revenue from taxes on diesel and gasoline is deposited into the Highway Trust Fund to support the Nation's transportation programs. Last year's TEA-21 legislation established a mechanism to ensure that all motor fuel tax revenue would be distributed equitably to the states to address their growing transportation needs. The funds are distributed to states based on a formula that was negotiated as part of the congressional debate on TEA-21. Proposals to reduce the gasoline tax by 4.3 cents would cut highway funding by about $7 billion per year or about 25 percent, and eliminating the 24.4 cent diesel tax would cut transportation spending by $8-9 billion.
[4] Sandherr concluded, "If highway funding is cut, it will only cost the motorists in the long-run because road repairs and improvements will be postponed or worse, cancelled."
- Institutional AuthorsAssociated General Contractors of America
- Code Sections
- Subject Area/Tax Topics
- Index Termsbudget, federallegislation, taxfuel, dieselgasoline tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-7667 (1 original page)
- Tax Analysts Electronic Citation2000 TNT 51-23