[Congressional Record Volume 142, Number 58 (Wednesday, May 1, 1996)]
[Extensions of Remarks]
[Page E681]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    GAS TAX RESTITUTION ACT OF 1996

                                 ______


                         HON. NICK J. RAHALL II

                            of west virginia

                    in the house of representatives

                         Wednesday, May 1, 1996

  Mr. RAHALL. Mr. Speaker, today I am introducing legislation to 
transfer to the highway trust fund revenues received from the 4.3 cents 
of the Federal motor fuel tax that is currently going to the general 
fund.
  Many of us concerned with our surface transportation infrastructure 
were troubled when in 1993 this tax of 4.3 cents per gallon of motor 
fuel was imposed not for the purposes of bolstering receipts into the 
highway trust fund, but for the purpose of deficit reduction. I would 
note, however, that this was not the first time this occurred. As part 
of the Omnibus Budget Reconciliation Act of 1990, the Federal motor 
fuel tax was increased by 5 cents, with one-half of this amount 
dedicated to the general fund. This 2.5 cents was later restored to the 
highway trust fund effective September 30, 1995.
  As we all know, the basic premise of the Federal motor fuel tax is 
that it is a user fee collected for the express purpose of making 
improvements to our road and highway infrastructure. It is one of the 
few taxes where Americans can see an immediate and direct result for 
having to pay it as they drive on the Nation's highways.
  Today, the debate is centered on repealing the 4.3-cents-per-gallon 
tax. I offer an alternative. Restore it to the highway trust fund.
  Few, if anyone in this body, can say that the areas they represent do 
not require road and highway improvements. The legislation I am 
introducing today will not only restore faith with the American people 
on the uses of the Federal motor fuel taxes, but will certainly assist 
in making needed surface transportation enhancements.

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