Repeal of the 4.3 cents per gallon RR fuel tax

[oltmannd]

QUOTE: Originally posted by futuremodal

Quothe Ed H of the AAR:

"Railroads and barges are currently the only modes of transportation that pay a fuel tax into the general fund," said Association of American Railroads President and Chief Executive Officer Edward Hamberger in a prepared statement. "Fuel taxes paid by other modes go to support their right-of-way while #8230; railroads pay virtually all of the costs to maintain and improve their infrastructure. We urge President Bu***o sign [the bill] into law."

If as expected the repeal of the 4.3 cents per gallon fuel tax on railroads and barge lines comes into effect, does anyone think that the railroads will take this tax break and apply it to their infrastructure needs for which they are begging for federal aid? Doubtful. It would have been better for the feds to take this 4.3 cents and use it to pay for the eventual federal intervention into rail infrastructure upgrades that are being lobbied for by the railroads.

In an ironic twist, instead of the railroads paying into the general fund, they will now be taking from the general fund. As usual, it is the average Joe taxpayer who ends up getting screwed.

I completely disagree .

The money "saved" from any tax repeal will go two places. To help raise capital for capacity improvements and equipment and to the owners in the form of dividends.

[Anonymous]

Quothe Ed H of the AAR:

"Railroads and barges are currently the only modes of transportation that pay a fuel tax into the general fund," said Association of American Railroads President and Chief Executive Officer Edward Hamberger in a prepared statement. "Fuel taxes paid by other modes go to support their right-of-way while #8230; railroads pay virtually all of the costs to maintain and improve their infrastructure. We urge President Bu***o sign [the bill] into law."

If as expected the repeal of the 4.3 cents per gallon fuel tax on railroads and barge lines comes into effect, does anyone think that the railroads will take this tax break and apply it to their infrastructure needs for which they are begging for federal aid? Doubtful. It would have been better for the feds to take this 4.3 cents and use it to pay for the eventual federal intervention into rail infrastructure upgrades that are being lobbied for by the railroads.

In an ironic twist, instead of the railroads paying into the general fund, they will now be taking from the general fund. As usual, it is the average Joe taxpayer who ends up getting screwed.