New transportation law is on the way
President Barack Obama and legislators on the hill are staking out positions on highway funding. President Obama is calling for immediate repairs funded in part by private investment. In his State of the Union address, Obama said that reinvestment in our infrastructure will make the country more competitive and create more jobs.
What he is proposing is a “frontloaded” $50 billion infrastructure investment, to include $40 billion for deferred maintenance on highways, bridges, transit system and airports.
It still remains that there will be opposing views from both sides of the aisle in the House and Senate on whatever funding mechanism that is agreed on to make the Highway Trust Fund whole again. We will have those that don’t want to raise the fuel tax and we will have those that will fight against vehicle miles traveled (VMT) taxes tied to your GPS so everyone will pay their fair share of user fees. However, you can be sure of one thing – that is an increase in user fees and gasoline and diesel fuel all will be going up as soon as Congress can agree on how to do it.
Once again, the American Trucking Association CEO Tom Donohue and the U.S. Chamber of Commerce both agree that supporting a fuel tax increase would be the most simple to implement but it would have to be indexed to the rate of inflation so that it would keep current on the rate that needs to be charged.
Therefore, we know that by 2014, there will be a new transportation bill voted into law.
And you thought that the middle class was not going to be taxed anymore.