Foley Backs 10-Cent Gas Tax Hike to Fix Roads, Bridges

House Speaker Thomas S. Foley (D-Wash.) declared his support Monday for legislation that would increase the federal tax on gasoline by 10 cents a gallon and earmark the estimated $10 billion in annual revenues for renovation of the nation’s decaying highways and bridges.

Senate Minority Leader Bob Dole (R-Kan.) has previously indicated support for the idea of a gasoline tax increase, as has Foley. This is the first time a specific levy has been proposed.

But the White House immediately declared its opposition to the proposal and served notice that Democratic initiatives expected on child care and clean air also face the prospect of presidential opposition unless they conform to Administration standards.

White House Press Secretary Marlin Fitzwater, saying President Bush opposes a gasoline tax increase, Monday raised the specter of frequent vetoes.

Citing the impending battle over renewal of the Clean Air Act as an example of the struggles expected to begin when Congress returns today after a long holiday recess, Fitzwater said in an interview: “The Clean Air Act is symbolic of the problem we face with a Democratic-controlled Congress. Every proposal we make, the Democrats want to put their stamp on it, put more money in it and shape the way it works.”

The White House released a copy of a letter from Bush to Senate Majority Leader George J. Mitchell (D-Me.) declaring the President will sign only legislation that “balances environmental and economic progress” and that initial cost estimates of the clean air bill reported by the Senate Environment Committee “exceed $40 billion annually--more than double the cost of the Administration’s bill.”

“The President’s letter to Mitchell is the opening salvo in our strategy to deal with the problem” of Democratic programs that exceed Administration goals, Fitzwater said.

The child-care legislation, which Foley predicts will pass the House in March, also violates Administration standards and appears to be a candidate for a presidential veto, Fitzwater said.

Foley acknowledged that in the current political climate, with Bush opposing tax increases of all kinds and public sentiment apparently in his corner, a gasoline tax hike would face an uphill struggle in Congress.

In a luncheon interview covering a broad range of subjects, Foley said the advanced state of decay of the nation’s infrastructure justifies a 10-cent gasoline tax hike, provided the revenue is earmarked for repairs.

Fitzwater said that Bush, in his State of the Union address on Jan. 31, will outline an Administration legislative program centered around “what we call the four C’s: crime, child care, capital gains and the Clean Air Act.”

The President still believes he has a good chance to win congressional approval of a reduction in the capital gains tax from 28% to 15%, Fitzwater said, “but he knows that Foley and Mitchell will do everything they can to scuttle it, especially Mitchell.”

Foley told reporters he believes the Democratic-controlled Congress will pass some kind of measure to encourage savings and investments. “It might be some kind of capital gains tax reduction,” he said, “but it should meet three tests: It should encourage savings and investment. It should not exacerbate the federal budget deficit problem. It should be fair to all income groups and not just benefit the high-income group.”

The Speaker’s proposal to hike the federal gasoline tax, now 9 cents a gallon, and earmark the increase for repair of the infrastructure might be expected to gain additional support because of the widespread destruction of roads and bridges in the San Francisco earthquake.

However, Rep. Robert T. Matsui (D-Sacramento), a member of the House Ways and Means Committee, pointed out that California and many other states are planning to raise their state gasoline taxes. Congressmen from those states, Matsui said, would not look favorably on an increase in the federal tax at this time. California’s gasoline tax now stands at 9 cents a gallon.

Foley’s proposal “may be somewhat premature,” he said. “Before any tax increase becomes law, it requires the consent of the President. You won’t get a veto-proof vote out of something like this.”

Rep. Dan Rostenkowski (D-Ill.), chairman of the House Ways and Means Committee, has long favored a gasoline tax increase--at times proposing a boost of as much as 25 to 50 cents per gallon--but has always added it could not be enacted without Bush’s approval.

Sen. Lloyd Bentsen (D-Tex.), chairman of the Senate Finance Committee, expressing a Texas view held by many other Westerners, has been opposed to a gasoline tax increase as hitting people who must drive to work or from farms or ranches to market.

Staff writer William Eaton contributed to this story.