WASHINGTON, D.C. — While the trucking industry in the US calls on Washington to take action to reduce fuel prices, an Associated Press story suggests regulators are actually considering a 10 cent per gallon increase.
Currently, the feds levy a 24.3 cent per gallon fuel tax on diesel. The suggested increase is due to a report from the construction industry that a shortfall in highway spending could result in thousands of job losses.
Fuel taxes in the US go into the Highway Trust Fund, which is used for road repairs and infrastructure upgrades. Presidential hopeful John McCain had recommended a 90-day suspension of the federal fuel tax, however it appears to be unlikely now.
“Some economists don’t think much of my gas tax holiday,” McCain said in a speech. “But the American people like it, and so do small business owners.”
The “tax holiday” would reportedly cost the Highway Trust Fund about US$9 billion, according to the Associated Press.
The American Trucking Associations has voiced its support for higher fuel taxes in the past, provided the money was well used to upgrade the country’s infrastructure.
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