In The News

ATA, OOIDA express concerns over road funding plan

WASHINGTON — A plan to raise road funds by first raising the federal tax on fuel, and then moving to system of charging cars and trucks by the mile has received a mixed reception in the trucking industry.

The American Trucking Associations credited the National Surface Transportation Infrastructure Financing Commission for its “thorough accounting” of the transportation funding challenges, and said the situation requires “dramatic and immediate steps” to fix America’s highways.

ATA said it agrees with the commission’s 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. Additionally, ATA said any increases should be applied fairly to all highway users.

And while ATA acknowledged that the tax on gas and diesel will no longer suffice as the primary source for highway funds, the group expressed doubts about the vehicle miles tax. ATA cited privacy concerns as well as the costs to implement and maintain the program. 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 nation’s balance of trade, ATA stated.

“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.”

In its response to the report, the Owner-Operator Independent Drivers Association agreed there is a need for additional funds but wonders why there was no thorough evaluation of how highway user dollars are currently spent.

“This commission’s report is a waste of public and private resources, let alone the time and energy of transportation policymakers,” said Todd Spencer, executive vice president of OOIDA. “Before dumping more water into the bucket, we need to fix the gaping holes in the bottom.”

OOIDA notes the commission neglected to address “the most fundamental problem,” which is wasteful spending on programs that aren’t aligned with actual construction and maintenance for our highway system.

Most relevant to truckers are the commission’s recommendations for a 15-cent increase in the diesel fuel tax, doubling the annual Heavy Vehicle Use Tax and further increases in the truck tire tax, OOIDA says. Also, the commission suggests more toll roads, conversion of existing public roads into toll roads, and a system to record and tax miles driven.

Before agreeing to pay more, the association will demand that transportation tax dollars collected be used in the most effective and efficient ways to address the nation’s significant infrastructure needs.

“This is like giving your kid money and sending him to the store for milk and bread,” said Spencer. “If he comes back asking for more money, you’ll want to know why. You’ll also expect him to go back and actually get what he was supposed to in the first place.”

Trucks make up only 7 percent of traffic on the nation’s highways, according to OOIDA, but the various highway use taxes that truckers pay amount to more than 36 percent of the total money contributed to the Federal Highway Trust Fund.

“Truckers are already paying more than their fair share,” said Spencer.

Kevin Jones of The Trucker staff can be reached for comment at [email protected] .