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Plan Would Cut Flat Tax on Gas at the Pump by 17 Percent Over 2 years
Feb. 5, 2013 /PRNewswire-USNewswire/
-- Governor Tom Corbett today announced his plan to inject nearly
$2 billion of additional funding into
Pennsylvania's transportation system.
This investment in
Pennsylvania's future increases public safety, drives commerce, creates jobs and provides reliable funding for our transportation needs without leaving the bill to our future generations.
Corbett made the announcement on transportation funding as part of his statewide budget address.
"Every year, nearly half-a-trillion dollars worth of goods and services move through our state transportation system," Corbett said. "Transportation is the bloodstream of our economy. If it fails, our economy fails."
Pennsylvania's current transportation funding shortfall has been an ongoing concern that has resulted from inflation, reduced tax income due to more fuel efficient vehicles, and decades of underinvesting.
Left unaddressed, our transportation infrastructure challenges constitute a public safety concern. Currently, more than 31,000 buses carry 1.5 million children to school on our roads and bridges each day. Corbett's plan will address our needs, ensuring our transportation system remains safe and accessible.
With its limited resources, PennDOT has been able to make progress on restoring or replacing old bridges but it has done so at the expense of roadways. The number of roads in poor condition has risen from fewer than 7,500 miles in 2007 to more than 9,200 miles in 2011.
"I am proposing two adjustments to the way we provide for our transportation needs," Corbett said. "I am calling on the legislature to pass a 17 percent reduction in the flat liquid fuels tax paid by consumers at the pump. Second, I am asking the general assembly to begin a five-year phase out of an artificial and outdated cap on the tax paid by oil and gas companies on the wholesale price of gasoline; it is time for the oil and gas industry to pay their fair share of the cost of the infrastructure supporting their industry."