Now that we have failed in hostage negotiations 101 on our first go 'round, we are going to have a chance to do it all again.
You all know about the partial FAA shutdown and how the GOP is holding it hostage, but did you know that the federal fuel excise tax is set to expire on September 30, 2011? That is right, at the end of September 14.1 cents of the 18.4 cents excise on fuels is set to expire. The remaining 4.3 cents has no sunset clause.
Under normal circumstances the extension of the excise which goes to the Highways Trust Fund, would be a no brainer, but apparently nothing is that straightforward any more.
These funds are used mainly by the Federal Highways Administration to parcel out to the states for the construction and maintenance of the highway system. Funds also provide for mass transit and Leaking Underground Storage Tank Trust Fund.
Federal Excise Gas Taxes
The crazies (read republicans) are already crowing that gas taxes should go down and who needs those damned highways anyway? But all signed point to the fact that when taxes end, the final price doesn't seem to go down (see FAA).
Some states (see California) have provisions in law to take over collecting these taxes should the federal tax expire, but what is going to happen to states that traditionally collect less excise but use more federal transportation dollars? Much as I might like the California money stay in California, it won't make cross-country trips any easier.