[Congressional Record Volume 156, Number 133 (Wednesday, September 29, 2010)]
[Extensions of Remarks]
[Page E1839]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            INTRODUCTION OF THE HEAVY TRUCK TAX FAIRNESS ACT

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                     Wednesday, September 29, 2010

  Mr. BLUMENAUER. Madam Speaker, I rise today to introduce the Heavy 
Truck Tax Fairness Act. Nothing is more essential to restoring the 
economy, revitalizing our communities, and protecting our environment 
than the effort to rebuild and renew America. The U.S. faces steep 
infrastructure challenges. Our infrastructure inventory is in poor 
repair and much of it is outdated--not just decades, but often 
centuries old. Our effort to rebuild and renew that infrastructure is 
stalled because of a funding impasse. The Highway Trust Fund nearly 
exhausted its funding several times recently and it is clear that our 
existing funding mechanisms are insufficient to meet our current, much 
less future, needs. Congress must consider new revenue sources to meet 
our infrastructure challenges and must work with transportation users 
to find the most efficient means of raising this revenue.
  The funding sources for the Highway Trust Fund can be volatile, 
depending on the health of the economy. Current law places a 12 percent 
tax on the sale of new heavy trucks, trailers, and certain tractors. 
This tax is an important source of Highway Trust Fund revenues. In 
times of economic stress, these sales fall dramatically, badly limiting 
Trust Fund resources. These lost sales have several important effects. 
By reducing revenue to the Trust Fund, the decline hinders economic 
productivity by imposing costs from poor infrastructure. It also 
reflects an increase in the average age of the trucking fleet. New 
trucks have significant environmental and safety advantages, and 
Congress should reduce the barriers to new truck acquisition. To meet 
the demand for new trucks, most truck manufacturers will add employees, 
as most have significant engine and final assembly operations in the 
U.S.
  The Heavy Truck Tax Fairness Act would replace the 12 percent excise 
tax currently levied on new truck, trailer, and certain tractor sales 
with a revenue neutral increase in the diesel fuel excise tax of $0.073 
per gallon. This modest change will be revenue neutral over 10 years 
and will have the effect of smoothing resources available to the 
Highway Trust Fund and will ensure the U.S. can continue investing in 
our vital transportation infrastructure.
  I also note that this legislation does not affect all transportation 
stakeholders equally. In particular, smaller companies and owner-
operators could see fewer benefits. I pledge to work with affected 
groups as this legislation advances to ensure that the legislation, as 
enacted, is as carefully tailored and broadly beneficial as possible.

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