Congress Works on Rail Tax Cut
Congress was working late this week on an attempt to pass a $240 billion tax cut bill, part of which would repeal the 4.3-cent-per-gallon excise tax on diesel fuel used by trains and waterway barge companies ("Congress May Pass Tax Break For Rail, Barges ," 7-31, p. 1).
The House Ways and Means Committee had agreed to repeal of the tax, but the provision was stripped out of the railroad retiree benefits bill because it threatened passage of the legislation, said sponsor Rep. Kenny Hulshof (R-Mo.)
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The White House said the repeal would cost the government about $1.6 billion in lost revenue over the next 10 years.
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Congress imposed the tax in 1993 to reduce the deficit.
