CONGRESS ONCE AGAIN FAILED TO ADOPT A LONG-TERM
extension of highway funding before heading out of town for a month,
but at least it managed to adopt a short-term extension.
As Senior Editor Mark Solomon reported, the bill will fund highway
and mass-transit projects through May 2015. Following its favorite game
of brinksmanship, Congress passed the bill just in time to prevent the
Highway Trust Fund from running dry. The bill included a transfer of
$10.8 billion into the fund from general revenues, paying for it with a
sort of budgetary accounting trick that would probably make your local
CPA blanch.
Senators had pressed for a shorter extension in hopes of pushing
through a multiyear reauthorization, a plan supported by the American
This Congress, and in all likelihood the one to follow
in January, is deathly allergic to tax increases of any
kind—even one supported by some of the most conservative and tax-averse business interests in the land.
The 18.4-cent tax on a gallon of gasoline and the
22.4-cent tax on diesel have not changed since 1993.
Vast improvements in fuel efficiency mean that most
drivers are paying less tax per mile than they were at
that time. And inflation has taken a major bite out of
spending. The result is a substantial shortfall in the
funds states need to keep highways safe and productive. And it will only
get worse as a growing economy puts more stress on the roads. This is
not simply a transportation issue or a tax issue. It is an economic issue,
one that if not addressed could harm any business that ships or receives
goods—that is, every part of our economy. In the long term, we need to
adopt a different mechanism than the per-gallon tax on fuel. But in the
short term, it’s past time for members of Congress to step up and raise
the fuel tax.
***
On a wholly different topic, I don’t want to sign off without congratulating old friend Michael Regan, founder of TranzAct Technologies,
who will receive the Council of Supply Chain Management Professionals
(CSCMP) Distinguished Service Award at the group’s annual conference
in San Antonio. I cannot think of anyone who deserves it more. Mike
is not only a shrewd and inventive businessman, he is also a passionate
advocate for the logistics profession. I’ve known Mike for more than a
quarter of a century and continue to learn from him. Congratulations,
Mr. Regan.
bigpicture
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