House Committee Approves 5-Cent Hike in Federal Gas Tax

Setting the stage for a major floor fight, the House tax writing committee Wednesday narrowly approved a 5-cent increase in the federal gasoline tax to help finance a controversial $153.5-billion transportation bill.

In a surprise move, the House Ways and Means Committee also approved a three-year extension of the last 5-cent gas tax increase, which had been scheduled to expire in 1995. That increase, which raised the tax from 9 to 14 cents, took effect in January. Half of that hike is designated to help reduce the federal budget deficit.

If enacted into law, the tax increase and extension recommended by the committee would push the federal gas levy to 19 cents a gallon next October and maintain it at that level through September, 1996, when the new tax would expire.

The 19-17 committee vote, taken after hard lobbying by House Democratic leaders, offered a preview of the bitter fight expected to erupt on the House floor. The full House is expected to take up the five-year transportation bill and the accompanying gas tax increase as early as Friday.

“There was a lot of hand-wringing here,” said Rep. Dan Rostenkowski (D-Ill.), chairman of the tax committee.

“It’s not unusual for (committee) members to vote something out that the leadership wants, but, ultimately, on the floor of the House of Representatives, (to) make their own decision,” Rostenkowski added. “This is not going to be easy.”

The Bush Administration has vowed to veto any new transportation measure that includes an increase in the gasoline tax. Despite that, three Republicans joined 16 Democrats to push through the tax plan.

Committee members turned down an amendment offered by Rep. Jim Moody (D-Wis.) that would have barred using money from the new gas tax to finance any of the about 430 special projects earmarked in the House transportation bill.

The projects, which will cost more than $6 billion, are widely regarded as Capitol Hill “pork” to enhance members’ standing in their own districts.

“This is . . . the anti-trichinosis amendment,” said Moody. “Congress has decided to pork it up.”

The remark apparently disturbed Rostenkowski, who replied: “The one thing we can’t do is run from our responsibilities . . . . It’s always nice going home and taking a low bow for something that’s been done in your community, even if you didn’t do it yourself.”