Rep.Tschumper Introduces “Progressive” Gas Tax Bill

02/24/2007

This week, the House and Senate Transportation Committees held a joint hearing with Congressman Jim Oberstar, chairman of the Committee on Transportation and Infrastructure in the U.S. House of Representatives.

Congressman Oberstar emphasized that he is in a position in Congress to help Minnesota address its growing transportation crisis through additional federal funding. But the state must provide enough revenue for transportation to receive matching federal funds. If Minnesota doesn't act now in cooperation with Congress, it risks serious damage to it's economy and additional long-term setbacks for transportation.

Rep.Ken Tschumper (DFL-La Crescent) introduced a bill this week for a
10-cent gas tax increase.

"The gas tax is the major source of funding for our highway system. It hasn't been increased since 1988. With inflation, the current 20- cent tax on a gallon of gas is worth the equivalent of only 12 cents today."

A ten-cent gas tax increase this session would cost the average motorist $75 and raise $300 million annually for transportation needs. "Those who use the roads will pay a little extra to improve and maintain them" Tschumper said. "But a gas tax is a much better approach than what the Governor has proposed because with a gas tax we are not paying any interest on borrowed money." Governor Pawlenty has proposed a controversial bonding program for road construction and repair that would cost millions of dollars in interest payments.

To make the tax less regressive Rep. TSCHUMPER have included a $50 refundable income tax credit for people in the lowest state income tax bracket. These motorists will pay on average only $25 annua [message truncated]