2014 US Trucking News – Recent Gas Tax Bill May Hurt US Truckers
The main Republican sponsor of a bill that aims to enlarge the taxes of gas says if the bill isn’t passed — He will instead look for an abolishment of laws that will do well to the trucking industry, which includes a 2005 bill that increases the truck loads to around 24,000 pounds.
Sen. Jim Rausch, a Derry Republican, says that this added weight is contributing to the destruction of US roads.
Testimonies were heard by the Senate Ways and Means Committee for over four hours on Sen. Rausch’s bill to raise the gas tax by four cents this year, and again in 2018, and then bring together these future raises to the index of consumer prices. Since 1991, the state’s gas tax of 18 cents with each gallon has not been changed. This makes it difficult for the State Department of Transportation to finish projects, due to inflation making costs rise up.
Sen. Rausch told the committee that this is simply a user fee, and not a tax, since they way it affects people will directly rely on the amount of time that they drive on the state’s roads.
A user fee is a type of tax, a fee, or an impost payment that is paid to the owner of a company or an operator by a facility user as a type of condition for using this facility.
User fees are paid by people so they can use a lot of facilities and public services. At the federal level in the United States, people who walk up to the Statue of Liberty, drive into national parks, or use any type of service or resource in the Library of Congress are charged.
Certain states also do charge tolls for driving on highways, or give a fee on those who are found camping in state parks. Communities also have entrance fees for public swimming pools, and meters that are used to park on local streets, public beaches, dump stickers, as well as postage stamps.
When it comes to international development, user fees usually mean system fees for basic health care, education, and other types of services that are given by other developing countries, in order to make up for the costs of these services.
A fuel tax is a kind of excise tax which is imposed with fuel sales. In a lot of countries, fuel tax is given on fuels which are made for transportation. Fuels are also used to give power to agricultural vehicles, and home heating oil, which bears some similarities to diesel are taxed at a different, and usually a lower rate. These fuel tax receipts are given to projects about transportation, so fuel tax is already considered to be a user fee by a lot of people. In other countries, fuel tax is considered as a source of general revenue. And in some instances, fuel tax is also used as a type of eco tax, to promote sustainability in the environment.
Taxes that are given to transportation fuels have been supported as a method of lessening the amount of pollution, as well as the possibility of global warming and energy conservation. By placing higher taxes on fossil fuels, this leads to petrol becoming just as expensive as other fuels such as natural gas, biodiesel or electric batteries, at a cost to the consumer by inflation as the cost of transportation continues to rise to transport commodities across the nation.
The International Monetary Fund has often suggested that other countries need to begin charging fees regarding these services in order to lessen the amount of budget deficits. This position is more and more contested by those who claim that these user fees affect poor people the most. Some people have even argued that they should be free at the point of use.
Governor Maggie Hassan, who is a Democrat, says that she will only place her signature on the bill if it arrives to her desk. But it faces a bumpy path to be able to get to the Senate. Meanwhile, Senate President Chuck Morse, who is a Salem Republican, had pointed questions which made his opposition clear. Senator Bob Odell, a Lempster Republican, says that he is free to discuss an increase, but he does not support placing future increases into law. Senate President Morse says to Sen. Odell that he wants to clarify that whether it is called a road toll or a gas tax, the debate that they have had for years will not be changed. While Sen. Odell and the governor have agreed with indexing, the senate president disagrees completely.
Commissioner Chris Clement says that the state’s funds for highways are set to begin in 2016 with a $48 million dollar deficit. The total amount of money from the proposed increase, which would amount to $31.9 million in 2015, would end up in the highway fund of the Department of Transportation, but the bill still doesn’t spell out which project these funds will end up going to. Sen. Rausch says if the Legislature fails to find any money to get the roads repaired, then it needs to search for methods to lessen the amount of damages, such as limiting how much weight these trucks will be able to carry.
The United States Highway Trust Fund is a type of transportation fund which gets money from a federal fuel tax of 18.3 cents per gallon on gasoline, and 24.4 cents per gallon on diesel fuel, as well as related excise taxes. The fund currently has three accounts – The Highway Account, which funds construction of roads and highways, a Mass Transit Account which supports mass transit, and a Leaking Underground Storage Tank Trust Fund. This fund was established in 1956 in order to financially support the United States Interstate Highway System, as well as other roads. The Mass Transit Fund was made in 1982.
Those who support the bill say that repairing the state’s bridges and roads is the key to bringing in new types of businesses, making the economy grow, and keeping the young people in the country.