[Congressional Record Volume 142, Number 60 (Friday, May 3, 1996)]
[Senate]
[Page S4670]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     REPEAL OF THE 4.3-CENT GAS TAX

  Mr. DOLE. Mr. President, finally, let me say a word with reference to 
the Finance Committee hearing that was held this morning on repeal of 
the gas tax, the 4.3-cent gas tax, which was made permanent in 1993 in 
the Clinton tax bill, which raised taxes by $265 billion, the gas tax 
increase contributes about $4.8 billion a year.
  Not a single Republican voted for the big, big, big tax increase, the 
largest tax increase in the history of America. In fact, I think one of 
my colleagues said, ``No, in the history of the world.'' Whatever, it 
was big. It has had an impact on the economy. Only once before--in 
1990--did Congress ever vote to have a gas tax to pay for deficit 
reduction. Gas taxes were always set aside in a trust fund to build 
highways, bridges, and whatever.
  That is a very worthy purpose, and that is why motorists and others 
who use fuel are prepared to pay that tax to have better roads, better 
highways, and better bridges. But in 1993, in the $265 billion Clinton 
tax increase, which included a 4.3-cent increase in gas taxes, which 
was an increase of about 25 to 30 percent in the Federal gas tax, 
instead of dedicating the funds to bridges, highways, and whatever, it 
is being used for deficit reduction.
  Gas prices are spiraling. They have gone up 30 cents in the State of 
California, for example--15 cents, 20 cents in most other States.
  Will repeal of this gas tax mean the price of gas will fall? Not 
necessarily. If we repeal the gas tax, we are certain they are going to 
be 4 cents less than they were before. We should not be raising taxes. 
We ought to be cutting spending. The American people want us to cut 
spending, not raise taxes, whether it is a gas tax or some other tax on 
the American people, American consumers, particularly low-income 
Americans.

  So it is my hope--in fact, on Tuesday of next week, I will introduce 
legislation, along with Senator Gramm, who will be the principal 
sponsor, along with Members of the House, to repeal the gas tax--repeal 
the gas tax and remind the American people that this is the beginning, 
this is the beginning.
  Remember, without a Republican vote, the Democrats in the House and 
Senate passed a $265-billion tax increase in 1993 that President 
Clinton wanted. We believe this is one small step we can take. It 
amounts to about $4.8 billion a year. We will find offsets, and they 
will not be tax increases. We will try to relieve the consumers and the 
motorists of at least that part of the burden on the Federal gas tax. 
It is going to go to the consumers. We cannot predict that prices may 
not rise because if there is no supply, prices will rise. But, as I 
have said, they will at least be 4.3 cents cheaper than they were 
before.
  I believe there will be strong bipartisan support for repeal, and we 
hope to have that legislation ready and on the Senate floor in the very 
near future.
  Mr. President, I yield the floor.
  Mr. WARNER addressed the Chair.
  The PRESIDING OFFICER. The Senator from Virginia.
  Mr. WARNER. Mr. President, I wish to commend the distinguished 
majority leader, and I shall join with him and ask if I may be a 
cosponsor of that legislation.
  Mr. President, this is a tax put on gasoline that does not go to the 
improvement of the Nation's highway transportation system. When a 
driver moves up to the pump and pays the tax, which could be as high as 
18 Federal, those taxes historically have gone to improve America's 
transportation--roads and bridges--but not in this case. President 
Clinton designed this tax to go elsewhere.
  I commend the distinguished majority leader. This Clinton tax must be 
repealed and repealed promptly. And henceforth, when you go to the gas 
pump, whatever tax it is, that tax must be directed toward the 
improvement of the transportation system. Those are the users in those 
automobiles and those trucks, and they are entitled to those funds to 
be expended for the very roads on which they must drive and work to 
support their families.

  I thank the Chair. I yield the floor.
  Mr. DOLE. Mr. President, I thank the Senator from Virginia.
  I hope to be meeting with him tomorrow on this very important issue.

                          ____________________