It has been apparent for some time now that the taxes assigned to support road and bridge building in this nation are inadequate.
Instead of patching the funding hole with one-time money as it has previously, Congress ought to . And that is, phase in an increase in the gas tax, which funds the Highway Trust Fund, so it is supported for years to come.
That, in conjunction with another plan to rework overseas tax laws and use proceeds for transportation could take care of the shortfall both in the short and long term.
The effort would take courage and consensus, both of which have been lacking in Washington, D.C. Yet, with gasoline prices as low as they’ve been, now is an ideal , before the Highway Trust Fund runs out of money in a few months.
At that point, the nation will face construction project shutdowns.
Sens. Bob Corker, R-Tenn., and and Chris Murphy, D-Conn., have a 12 cent per gallon increase in the federal portion of the gas tax, which now stands at 18.4 cents per gallon. It has not been raised since 1993 despite being eroded by inflation.
A gas tax hike is unlikely, unfortunately, but a plan that would scratch two itches — a desire for increased transportation funding and corporate tax reform — seems to be getting traction.
It involves U.S. corporations a window of time in which to repatriate offshore profits at a reduced tax rate. Such companies are and face a 35 percent tax.
The proposals vary. President Obama has proposed letting companies bring profits to the U.S. at a 14 percent rate; Sens. Rand Paul, R-Ky., and Barbara Boxer, D-Calif., have floated what seems a more viable plan that would set the rate at 6.5 percent and transfer the resulting revenue to the Highway Trust Fund.
Of course, Colorado could help itself by raising its per-gallon gas tax, which 22 cents and hasn’t been raised since 1991. Given that voters would have to approve such a hike, we’re not counting on it.
The Associated Press that instead of looking to the federal government, states are devising ways to pay for transportation funding themselves as they recognize that they can’t count on Congress. Five states have even raised the gas tax.
Colorado has pursued alternative sources of revenue for highways, and is likely to have to rely on them even more if the gas-tax stalemate persists.
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