Congress Moves To Stop New Tax Rules

By Gordon Gilbert

November 1, 2005
Taxes

Republican lawmakers have taken steps to shelve new tax rules in the 2005 Highway Bill designed to discourage truckers from using jet fuel to avoid higher taxes on diesel fuel. Sens.

Ted Stevens (R-Alaska) and Conrad Burns (R-Mont.) and Rep. Robin Hayes (R-N.C.) sent letters to U.S. Treasury Secretary John Snow urging suspension of the new rules, which would raise the tax rate on jet fuel to that of costlier highway diesel fuel but allow aviation jet fuel buyers to apply for a refund of the difference.

The new provisions would also require that all jet fuel taxes collected at the higher rate first go into the Highway Trust Fund. From there, they would go into the Airport and Airway Trust Fund but only after the purchaser applies for a credit.

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