U.S. Senator Barbara Boxer said that she agrees with the elimination of the 18.4% gallon tax to be used for highway construction after 2014.
U.S. Senator Barbara Boxer, a California Democrat, who is in charge with writing legislation for the continuation of the highway construction after 2014, said she proposes replacing the levy paid by consumers at the pump with a new tax to be paid on oil directly at refineries. This tax will result in enough revenue to continue highway construction and mass transit for the following six years.
“This could bring in more than all the other taxes bring in for transportation,” said Boxer, chairman of the Environment and Public Works Committee. “It would fund highway programs for six years, and it would do that while we do away with other fees. It’s a very exciting idea.”
In July, the Congressional Budget Office predicted that the U.S. Highway Trust Fund, which is used for the bridge and road projects, will be insolvent by 2015 if the Congress will not increase gasoline taxes, eliminates most highway spending or bails out the fund with general tax dollars.
Boxter’s proposal still has to be approved by the Senate Finance Committee, which previously said it will make sure that there will be enough funds for the infrastructure, part of a broader tax restructuring which is to take place in the following months.