[Congressional Record Volume 146, Number 83 (Tuesday, June 27, 2000)]
[Senate]
[Pages S5905-S5906]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MURKOWSKI (for himself, Mr. Abraham, and Mr. Campbell):
  S. 2799. A bill to allow a deduction for Federal, State, and local 
taxes on gasoline, diesel fuel, or other motor fuel purchased by 
consumers between July 1, 2000, and December 31, 2000; to the Committee 
on Finance.


                     emergency fuel tax act of 2000

  Mr. MURKOWSKI. Mr. President, I am joined by Senator Campbell and 
Senator Abraham today in introducing legislation that will ease the 
burden that the American motorist is facing every time he or she fills 
up at the gas pump. Those of us who are going to the gas pumps lately 
know that we are starting to see gas prices at an all-time high. We 
have never had gas prices approaching $1.75, which is the standard 
price for regular gasoline in the United States today.
  Our legislation recognizes that many consumers are facing a gasoline 
emergency. They use their cars to get to work, drive to day care, and 
take their children to summer school. Suddenly they are finding that 
filling up the family car's gas tank is costing $50 to $70 or even $100 
in some parts of the country. And in an America where the Clinton-Gore 
administration has done its best for seven years to increase America's 
dependence on OPEC, the American public was lulled by the 
Administration into believing that gas prices would always remain 
stable and cheap. The result: Nearly 50 percent of all vehicles sold 
are low-mileage sport utility vehicles (SUVs).
  Earlier this year, I co-sponsored legislation that would have 
temporarily repealed the 4.3 cent gas tax increase that was enacted in 
1993 with Vice President Al Gore's tie-breaking vote. Many Senators 
expressed concern that a temporary repeal of the tax would affect the 
highway construction program. Although our legislation resolved that 
problem, all Democrats and a few Republicans rejected providing gas tax 
relief and the measure was defeated.
  This is a new concept in one sense. But it does not establish a 
precedent. The bill I am introducing is to temporarily reduce the 
burden of all gasoline taxes on the American motorist. The bill will 
allow individuals and families to take an above-the-line deduction on 
their income that they pay taxes on for gasoline taxes incurred between 
July 1 and December 31 of the year 2000. This means every taxpayer who 
drives will be able to take advantage of the tax deduction from his or 
her income tax.
  The deduction of gasoline taxes is not a new idea. Up until 1978, 
motorists could deduct the State and local gasoline taxes if they 
itemized those taxes.

[[Page S5906]]

Legislation I have introduced today goes a step further by also 
permitting the deduction of Federal gasoline taxes, and it is an 
inclusive tax deduction since it will allow itemizers and nonitemizers 
to claim these taxes.
  For example, if we adopt this measure, and a family in my State of 
Alaska has a car that gets 20 miles per gallon and they drive perhaps 
9,000 miles in the next 6 months, they will get a $118 tax deduction; 
the same family in Michigan will get a $195 tax deduction; a family in 
Colorado will receive a $181 tax deduction.
  Some detractors say citizens will have to itemize returns. Most 
people go to self-service gas stations where a receipt is provided. I 
think most Americans would welcome this $195 or $181 tax deduction. I 
don't think it is too much to ask motorists.
  The IRS will surely draft some easy-to-use tables that will list by 
State the total gasoline tax burden. I have an example of what the 
tables look like. I ask unanimous consent that gas tax tables prepared 
by the American Petroleum Institute be printed in the Record.
  Mr. MURKOWSKI. Mr. President, the average national price of unleaded 
regular gasoline is anywhere from $1.70 to $1.80 today. This weekend 
begins the summer driving season. Gasoline prices could well go above 
$2 a gallon in many parts of the country. As we know, they are already 
over $2.30 in Chicago, Milwaukee, and other areas.
  Our proposal is a modest attempt to help the American family cope 
with these extraordinary price rises. This isn't going to solve the 
problem of high gasoline prices. We could have solved that problem 5 or 
6 years ago if we would have adopted the 1995 budget which permitted 
drilling in America's most promising new oil area, the sliver of the 
Arctic Coastal Plain, but President Clinton vetoed that bill, surely 
with the concurrence of Vice President Gore. So today we are dependent 
as never before on imported oil. The result is the record gasoline 
prices.
  I ask unanimous consent the text of the Emergency Fuel Act of 2000 
and the previously referenced tax tables be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2799

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

         This Act may be cited as the Emergency Fuel Tax Act of 
     2000.

     SEC. 2. TEMPORARY INCOME TAX DEDUCTION FOR FEDERAL, STATE, 
                   AND LOCAL FUELS TAXES.

       (a) Allowance of Deduction.--
       (1) In general.--In the case of the retail sale of 
     gasoline, diesel fuel, or other motor fuel after June 30, 
     2000, and before January 1, 2001, there shall be allowed to 
     the purchaser a deduction under section 164 of the Internal 
     Revenue Code of 1986 in an amount equal to the Federal, 
     State, and local taxes on the sale.
       (2) Deduction allowed to nonitemizers.--The deduction under 
     subsection (a) shall be taken into account in computing 
     adjusted gross income under section 62 of such Code.
       (b) Taxes Imposed Other Than at Retail.--For purposes of 
     subsection (a), any tax on any gasoline, diesel fuel, or 
     other motor fuel which is imposed other than on the retail 
     sale shall be treated as having been imposed on such sale and 
     as having been paid by the purchaser.
       (c) Guidelines.--The Secretary of the Treasury shall 
     establish such procedures (including the publication of 
     tables where appropriate) as are necessary to enable 
     taxpayers to determine the amount of taxes for which a 
     deduction is allowed under subsection (a).
       (d) Motor Fuel.--For purposes of this section, the term 
     ``motor fuel'' means any motor fuel subject to tax under 
     subtitle D of the Internal Revenue Code of 1986.
                                  ____


                   GASOLINE TAXES STATE-BY-STATE, 1998
------------------------------------------------------------------------
                                                                 Total
                                  State     Other      Total   Federal &
             State               excise     State      State     State
                                 tax \1\  taxes \2\    taxes   taxes \3\
------------------------------------------------------------------------
Alabama.......................      16.0        3.4      19.4       37.7
Alaska........................       8.0        0         8.0       26.3
Arizona.......................        18        1.0      19.0       37.3
Arkansas......................      18.5        0.2      18.7       37.0
California....................      18.0        9.2      27.2       45.5
Colorado......................      22.0        0        22.0       40.3
Connecticut...................      32.0        3.1      35.1       53.4
Delaware......................      23.0        0        23.0       41.3
Dist. of Columbia.............      20.0        0        20.0       38.3
Florida.......................      13.0       15.1      28.1       46.4
Georgia.......................       7.5        3.4      10.9       29.2
Hawaii........................      16.0       20.4      36.4       54.7
Idaho.........................      25.0        0        25.0       43.3
Illinois......................      19.0        5.2      24.2       42.5
Indiana.......................      15.0        3.6      18.6       36.9
Iowa..........................      20.0        1.0      21.0       39.3
Kansas........................      18.0        1.0      19.0       37.3
Kentucky......................      15.0        1.4      16.4       34.7
Louisiana.....................      20.0        0        20.0       38.3
Maine.........................      19.0        0        19.0       37.3
Maryland......................      23.5        0        23.5       41.8
Massachusetts.................      21.5        0        21.5       39.8
Michigan......................      19.0        6.1      25.1       43.4
Minnesota.....................      20.0        2.0      22.0       40.3
Mississippi...................      18.0        2.4      20.4       38.7
Missouri......................      17.0        0        17.0       35.3
Montana.......................      27.0        0.8      27.8       46.1
Nebraska......................      23.5        0.9      24.4       42.7
Nevada........................      23.0       10.0      33.0       51.3
New Hampshire.................      18.0        1.7      19.7       38.0
New Jersey....................      10.5        4.0      14.5       32.8
New Mexico....................      17.0        1.0      18.0       36.3
New York......................       8.0       22.4      30.4       48.7
North Carolina................      21.6        0.3      21.9       40.2
North Dakota..................      20.0        0        20.0       38.3
Ohio..........................      22.0        0        22.0       40.3
Oklahoma......................      16.0        1.0      17.0       35.3
Oregon........................      24.0        0        24.0       42.3
Pennsylvania..................      12.0       14.3      26.3       44.6
Rhode Island..................      28.0        1.0      29.0       47.3
South Carolina................      16.0        0.8      16.8       35.1
South Dakota..................      21.0        2.0      23.0       41.3
Tennessee.....................      20.0        1.4      21.4       39.7
Texas.........................      20.0        0        20.0       38.3
Utah..........................      24.0        0.5      24.5       42.8
Vermont.......................      19.0        1.0      20.0       38.3
Virginia......................      17.5        0.7      18.2       36.5
Washington....................      23.0        0        23.0       41.3
West Virginia.................      20.5        4.9      25.4       43.7
Wisconsin.....................      25.4        3.0      28.4       46.7
Wyoming.......................      13.0        1.0      14.0       32.3
                               -----------------------------------------
    U.S. averaged \4\.........      17.8        4.8      22.6       40.9
------------------------------------------------------------------------
\1\ State excise taxes represent rates effective as of July 1998.
\2\ Largely excludes local taxes which are estimated to average
  approximately 2 cents per gallon nationwide. However, some local
  county taxes in Alabama, California, Florida, Hawaii, Nevada, New
  York, and Virginia are included. Includes state sales taxes, gross
  receipts taxes, and underground storage tank taxes. State sales taxes,
  expressed in cents per gallon, are based on selected city average
  retail gasoline prices as of April 1998. See notes to tax tables for
  individual states.
\3\ Includes 18.3 cents per gallon federal excise tax and volume-
  weighted average U.S. total state taxes.
\4\ Represents the average of state tax rates multiplied by state
  gasoline consumption records.
 
Sources: API Field Operations Issues Support, ``State Gasoline and
  Diesel Excise Taxes, July 1998,'' the Federal Highway Administration,
  ``Monthly Motor Fuel Reported by States''; and the U.S. Energy
  Information Administration, ``Motor Gasoline Watch.'' and ``On-Highway
  Diesel Retail Prices.'' American Petroleum Institute.

                     Gasoline taxes ranked by State

                           [Figures by cents]

Hawaii.............................................................54.8
Connecticut........................................................53.5
Nevada.............................................................51.4
New York...........................................................48.8
Rhode Island.......................................................47.4
Wisconsin..........................................................46.8
Florida............................................................46.5
Montana............................................................46.2
California.........................................................45.6
Pennsylvania.......................................................44.7
West Virginia......................................................43.8
Michigan...........................................................43.5
Idaho..............................................................43.4
Utah...............................................................42.9
Nebraska...........................................................42.8
Illinois...........................................................42.6
Oregon.............................................................42.4
Maryland...........................................................41.9
Washington.........................................................41.4
South Dakota.......................................................41.4
Delaware...........................................................41.4
Ohio...............................................................40.4
Minnesota..........................................................40.4
Colorado...........................................................40.4
North Carolina.....................................................40.3
Massachusetts......................................................39.9
Tennessee..........................................................39.8
Iowa...............................................................39.4
Mississippi........................................................38.8
Vermont............................................................38.4
Texas..............................................................38.4
North Dakota.......................................................38.4
Louisiana..........................................................38.4
Dist. of Columbia..................................................38.4
New Hampshire......................................................38.1
Alabama............................................................37.8
Maine..............................................................37.4
Kansas.............................................................37.4
Arizona............................................................37.4
Arkansas...........................................................37.1
Indiana............................................................37.0
Virginia...........................................................36.6
New Mexico.........................................................36.4
Oklahoma...........................................................35.4
Missouri...........................................................35.4
South Carolina.....................................................35.2
Kentucky...........................................................34.8
New Jersey.........................................................32.9
Wyoming............................................................32.4
Georgia............................................................29.3
Alaska.............................................................26.4
                                 ______