Commission to call for gas tax hike

A federal commission tasked by Congress to find money to invest in needed transportation infrastructure is expected to recommend a nearly 50 percent increase in the gasoline tax when it issues its recommendations later this month, wire services are reporting.

   The 15-member National Commission on Surface Transportation Infrastructure Financing plans to call for a 10-cent increase in the gasoline tax that currently stands at 18.4 cents per gallon, and a 12-cent to 15-cent increase in the diesel fuel tax, now at 24.4 cents, according to draft copies of the report obtained by the news organizations. The commission also will recommend linking the gas tax, which hasn't been adjusted since 1993, to inflation.

   The National Surface Transportation Policy and Review Study Commission also recommended raising the motor fuel tax 5 cents to 8 cents per year for five years, after which it would be indexed to inflation, and eventually transition to a distance-based user fee to replace the gas and diesel tax.

   The second commission will also recommend that states raise their fuel taxes and make greater use of toll roads and fees for rush hour driving.

Source: American Shipper