WASHINGTON — Treasury Secretary Jack Lew and Transportation Secretary Anthony Foxx called on Congress Monday to address the Highway Trust Fund shortfall before money runs out in little over a month’s time.
“It’s time for the country to take some bold steps forward,” said Foxx, during a panel discussion at Bloomberg Government.
The federal government currently raises money for highway construction and transit programs through the Highway Trust Fund, which collects money from gasoline and diesel fuel taxes and is set to run out of money on May 31.
The gasoline tax and the diesel tax have been stuck at 18.4 cents per gallon and 24.4 cent per gallon, separately, since 1993.
“Businesses are wasting resources because our infrastructure is falling behind,” said Lew, who pointed out the U.S. was ranked 12th in global competitiveness by the World Economic Forum due to insufficient infrastructure investment.
“Look at the things we need to build a stronger future, infrastructure is right at the top of these,” Lew said.
The Transportation Department has unveiled a six-year Grow America Act plan that would spur infrastructure investment by raising the repatriation tax, but Republicans in Congress have not widely embraced the initiative.
“The best way to fund infrastructure for the long term is to tie it to something that is broadly popular,” said Lew. “That’s why we tie it to business tax reform.”
American multinational firms often keep overseas earnings abroad because they would otherwise have to pay as much as 40% in U.S taxes, according to KPMG, the accounting and tax firm.
In the administration’s proposal, firms would pay about 14% in repatriation, with proceeds from the tax going to fund domestic infrastructure projects.
“Democrats and Republicans in Congress want to have a long-term bill,” said lobbyist Cliff Madison, president of Government Relations, Inc. “However, they haven’t agreed on the sources for funding, whether it is going to be an increase on the gas tax or the repatriation of U.S. money from overseas.”
Foxx also said he is willing to listen to other solutions from Congress.
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