The U.S. Chamber of Commerce supports a tax increase! Chamber chief Thomas J. Donhue went before the Senate Committee on Environment and Public Works Wednesday to invoke Ronald Reagan in the Chamber's call for a higher federal gasoline tax:
...let’s build upon the support for a gas tax increase that already exists within the business comunity, organized labor, the construction industry, shippers, truckers, and AAA. There's also political support in the states. Last year six states—three with Republican governors and three with Democratic governors—enacted bills to increase overall state gas taxes. The sky didn’t fall, and their economies have not collapsed. Both Republican and Democratic presidents have approved modest gas tax increases, including Ronald Reagan. So, it can be done [Thomas J. Donohue, "It's Time to Raise the Federal Gas Tax," U.S. Chamber of Commerce blog, 2014.02.12].
Donohue's tax-hike advocacy fits with the Chamber's overall support for higher costs at the pump, as evinced by their support for the Keystone XL pipeline, which will increase prices at American gas pumps much more than it will increase employment numbers.
The South Dakota Legislature doesn't appear inclined to raise state gasoline taxes, but they are working to make sure new technology doesn't sneak out from under our tax umbrella. Senator Mike Vehle and Rep. Mike Verchio offer Senate Bill 93, which makes sure we include liquid natural gas among our taxable motor fuels. SB 93 sets the tax on liquid natural gas at 14 cents per gallon, below the 22 cents per gallon for traditional motor fuels, though not as cheap as the 6 cents per gallon Mike Rounds and Jeff Sveen get to pay for their aviation gasoline.
SB 93 would increase tax revenue. It would tax more stuff and more people. But I'm sure the Republicans voting for it (SB 93 passed Senate Transportation, the full Senate, and House Transportation with minimal dissent) will tell us SB 93 is not a tax increase.
I'm also sure our legislators will have fun talking with South Dakota's Chamber members at the Chamber's Business Day this Thursday about whether they support the Chamber's call for higher gasoline taxes overall to fund road and bridge repairs.