Senate Shows Interest in Fuel Tax

March 29, 2000 9:55 AM, EST

WASHINGTON — Senate Majority Leader Trent Lott (R-Miss.) revived proposals to suspend a portion of the federal motor fuels tax in order to help truckers and motorists cope with out-of-control fuel prices.

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The idea appeared to be dead last week when the House Committee on Transportation and Infrastructure released a study showing the revenue lost by would devastate highway and transportation spending across the nation ("Shuster Opposes Fuel Tax Rollback," 3-20, p. 65).

Indeed, even as Lott proposed his tax rollback bills March 21, members of the House Subcommittee on Ground Transportation denounced the idea at a hearing where witness after witness testified against the tax cut as well.

Opponents of suspending the 1993 surcharge on gasoline and diesel of 4.3 cents a gallon say motorists will not benefit from the move, and that the real problem is not high taxes but an oil supply shortage due to production cutbacks by the Organization of the Petroleum Exporting Countries. Those who would like to see the tax repealed acknowledge that it is a small amount, but argue for any aid to those hurt by the fuel crisis.

For the full story, see the Mar. 27 print edition of Transport Topics. Subscribe today.