![]() Further, CBO assumed that Congress would not increase transportation spending beyond inflation (adjusted from 2012). CBO said that although vehicles would travel more miles in the future (therefore consuming more taxable fuel), congressional refusal to increase the fuel tax would have caused the Fund to receive less money. The Congressional Budget Office (CBO) projected in 2012 that the Fund's Highway Account and Mass Transit Account would become insolvent by 2014. Opening Balanceįrom 2008 to 2010, Congress authorized the transfer of $35 billion from the General Fund of the U.S. Fund balance Īccount balance for fiscal year 2016 (October 1, 2015 – September 30, 2016). Since 2000, there have been at least half a dozen attempts by individual members of Congress to suspend the federal gas tax, without which (and without a replacement) would have halted repair and expand the Federal highway system. As an alternative, Senator Clinton proposed a ' windfall tax' on oil companies, which would make up for the lost revenue from the federal tax on gasoline and diesel fuel without affecting any existing or planned projects. Senator Hillary Clinton endorsed this idea soon afterwards, while Senator Barack Obama opposed the holiday. ĭuring the 2008 presidential campaign, Senator John McCain proposed a 'gas holiday', suspending the tax during the peak summer driving season. Further transfers of $7 billion and an additional $19.5 billion were made in 20, respectively. This shortage was due to lower gas consumption as a result of the recession and higher gas prices, together meaning an overall decrease in revenues that would otherwise have been directed to the Fund. ![]() ĭuring 2008, the Fund required an additional $8 billion, which was provided by the Treasury’s general revenue funds to cover a shortage in the Fund. The Taxpayer Relief Act of 1997 redirected the 1993 increase to the newer Fund. In 1993, President Clinton increased the gas tax to 18.4 cents with the Omnibus Budget Reconciliation Act of 1993 with all of the increase going towards deficit reduction. The other 2.5 cents of the Omnibus Act was directed towards deficit reduction. Bush with the Omnibus Budget Reconciliation Act of 1990 to 14 cents, with 2.5 cents of the increase going to the Highway Fund. In 1990, the gas tax was increased by President George H. The 1982 Surface Transportation Assistance Act, approved by President Ronald Reagan in January 1983, increased the tax to nine cents with one cent going into a new Mass Transit Account to support public transport. In the late 1950s, the gas tax was increased to four cents. This original Act, also known as Highway Revenue Act, was set to expire at the end of fiscal year 1972. The Highway Revenue Act, pre-dating the Fund, mandated a tax of three cents per gallon. The 1956 Act directed federal fuel tax to the Treasury’s General Fund to be used exclusively for highway construction and maintenance. Prior to the Federal Aid Highway Act of 1956 and the establishment of the Highway Trust Fund, roads were financed directly from the General Fund of the United States Department of the Treasury.
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