DOT Rebuffs New Talk of Raising Fuel Taxes

President Obama remains opposed to raising federal fuel taxes while the economy is trying to recover despite calls in Congress to increase those fees to fund new legislation, said Deputy Transportation Secretary John Porcari.

The DOT’s second-highest official assured the Senate Environment and Public Works Committee March 24 that the administration’s position has not changed on hiking fuel taxes.

He had been asked by ranking Republican James Inhofe to restate the policy, in view of new fuel tax proposals being discussed in Congress. Inhofe noted that Transportation Secretary Ray LaHood previously told the committee that Obama and the administration do not believe raising the gas tax is good “for Americans who are out of work and can least afford the gasoline tax raise.”

“That is still our position,” Porcari said. “And I would add, Senator, that as we are in the beginning stages of a recovery it is as important as ever to make sure that that recovery is accelerated in every way possible.”

That is a key point for two major pieces of legislation that Congress is considering. Some members of the Senate, including leaders in the EPW Committee, and in the House want to pass an expanded multi-year surface transportation bill this year but are stumped over how to pay for it without increasing taxes on motor fuels. Those cover both diesel and gasoline, but are usually lumped together as a “gas tax.”

Recently, three other senators have said they will offer climate-change legislation with a new “carbon-linked fee” on transportation fuels, which would also reportedly include aviation fuel and is supported by major oil companies. “They talk about the linked fee, and what they are talking about is increased gas tax,” Inhofe said.

Contact John D. Boyd at jboyd@joc.com.