Saturday May 25, 2013
Washington News
Bipartisan Support of Highway Bill
Both the House and Senate have passed H.R. 4348, the Moving Ahead for Progress in the 21st Century Act (The Highway Bill). The House passed the Highway Bill on a bipartisan vote of 373-52.
Senate Finance Committee Chairman Max Baucus (D-MT) was clearly pleased with the cooporative effort by leaders of the House and Senate. He stated, "This bill provides the transportation infrastructure and access to education our economy and businesses need to create jobs. It's an investment in our economic future. This shows that when we put partisan differences aside, we can come together and find solutions to tackle the challenges facing America."
The bill had been held up in the conference committee until there was a compromise on the tax increases or offsets.
House Ways and Means Committee Chair Dave Camp (R-MI) also supported the compromise. He stated, "This legislation reflects that effort and serves as a reminder that Washington must learn to live within its means. To that end, House Republicans ensured that the provisions in this conference report promote job creation and do not add to the national debt."
The Highway Bill includes five major sections.
1. Highway Trust Fund - The allocations for current highway and bridge projects are funded through September 13, 2014.
2. Highway-Related Taxes - The three taxes on motor fuels and three taxes on heavy vehicles are extended at current rates.
3. General Fund Revenue - In order to continue to fund highway projects, there will be $18.8 billion transferred from the general fund to the highway trust fund over two years.
4. Pension Offset - In order to pay for highway fund projects, the required funding levels for corporate plans will not be based upon the current low interest rates. Corporate pension plans may be funded using an average of bond interest rates over 25 years. This lower funding rate will spread out the pension contributions by corporations and result in $9.4 billion in additional revenue over the next decade.
5. Pension Benefit Guarantee Corporation (PBGC) - The rates employers pay for premiums to insure employee pension plans will increase. These increased premium payments are estimated to produce total savings of $10.5 billion.
Editor's Note: There was bipartisan support for the transportation bill. Members from both parties recognize the positive benefit to the economy and to the nation that occurs with good roads and safe bridges.
Senate Finance Committee Chairman Max Baucus (D-MT) was clearly pleased with the cooporative effort by leaders of the House and Senate. He stated, "This bill provides the transportation infrastructure and access to education our economy and businesses need to create jobs. It's an investment in our economic future. This shows that when we put partisan differences aside, we can come together and find solutions to tackle the challenges facing America."
The bill had been held up in the conference committee until there was a compromise on the tax increases or offsets.
House Ways and Means Committee Chair Dave Camp (R-MI) also supported the compromise. He stated, "This legislation reflects that effort and serves as a reminder that Washington must learn to live within its means. To that end, House Republicans ensured that the provisions in this conference report promote job creation and do not add to the national debt."
The Highway Bill includes five major sections.
1. Highway Trust Fund - The allocations for current highway and bridge projects are funded through September 13, 2014.
2. Highway-Related Taxes - The three taxes on motor fuels and three taxes on heavy vehicles are extended at current rates.
3. General Fund Revenue - In order to continue to fund highway projects, there will be $18.8 billion transferred from the general fund to the highway trust fund over two years.
4. Pension Offset - In order to pay for highway fund projects, the required funding levels for corporate plans will not be based upon the current low interest rates. Corporate pension plans may be funded using an average of bond interest rates over 25 years. This lower funding rate will spread out the pension contributions by corporations and result in $9.4 billion in additional revenue over the next decade.
5. Pension Benefit Guarantee Corporation (PBGC) - The rates employers pay for premiums to insure employee pension plans will increase. These increased premium payments are estimated to produce total savings of $10.5 billion.
Editor's Note: There was bipartisan support for the transportation bill. Members from both parties recognize the positive benefit to the economy and to the nation that occurs with good roads and safe bridges.
Published July 6, 2012
Print
Email
Subscribe
BookmarkPrevious Articles
Supreme Court Permits Healthcare Tax
Tax Code is "Beast with Hundreds of Heads"
Follow
Us:
Us:
