ATA commends commission for noting funding challenges
Feb 27, 2009 12:44 PM
The American Trucking Associations (ATA) is commending the National Surface Transportation Infrastructure Financing Commission (STIFC) for its accounting of the funding challenges facing the nationís surface transportation systems.
"The situation the commission describes requires dramatic and immediate steps to address the deficiencies of the nationís highway infrastructure," ATA said.
ATA said it agrees with the commissionís recommendation on the need for an adjustment in the federal fuel tax, provided more of those revenues are focused on programs to improve goods movement.
ATA also said that all highway users must contribute equitably for their use. Strategic highway investments will benefit all highway users and one sector should not be asked to bear an unfair burden, particularly during these difficult economic times.
Future changes in vehicle technologies will reduce fuel use significantly and jeopardize the future use of the fuel tax as the primary means of financing highway improvements. The commissionís solution to migrate to a vehicle miles traveled (VMT) tax currently presents privacy concerns that are not only intrusive, but could lead to new forms of fraud and identity theft. The costs to implement and maintain the program also reduce the amount of funds that are directed towards infrastructure.
In addition, ATA said the proposed VMT tax system also eliminates consumer incentive to use less fuel, a necessary component in helping to lower the cost of fuel, reduce carbon output, and improve the nationís balance of trade. All of these issues must be addressed before considering a VMT tax as a viable long-term solution.
"The federal fuel tax has worked well for more than 50 years with the lowest collection and evasion costs," said ATA President Bill Graves. "There is no reason to transition to a new funding source within the 10-year timeframe suggested by the Commission, and certainly not to an alternative with as many problems as a VMT tax."
ATA said it agrees that the highway investment shortfall must be addressed. However, the fuel tax is a cost-effective source of highway funding and it should not be abandoned. The tax must be adjusted to meet current needs and Congress should do a better job of prioritizing how federal funds are invested.
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