Washington (Platts)--23Aug2007

Fifty-six citizens groups are looking for the US Congress and President
George Bush to block any efforts by some Congressmen to raise the federal
gasoline tax to pay for upkeep and repairs on aging American bridges.

     "Proponents of a federal gas tax increase insist that few would even
notice the change in their fuel bills," the groups said in an open letter to
Congress and the President, sent Thursday. "In reality, a 5 cents/gal jump
would... cost American motorists an estimated $25 billion over the next three
years. Combined with state gas taxes, many motorists would pay over
$7.50 in taxes for the average fill-up. This is a substantial burden on
families..."

     In wake of the early-August Minnesota bridge collapse, US House
Transportation Committee Chair James Oberstar suggested he would introduce a
bill to temporarily raise the federal gasoline tax by 5 cents/gal and create a
new fund to pay for needed infrastructure projects. The idea has gained some
traction, with former committee chairman Don Young, an Alaska Republican, who
usually opposes any tax increase, saying the idea had merit.

     The citizens group coalition, which was organized by the 362,000-member
National Taxpayers Union, argued that the problem is not a lack of money to
fix infrastructure, but the "earmark" process, which allows members to fund
projects in their own districts.

     They noted that the five-year highway bill enacted in 2005 represented a
42% increase in spending over its predecessor and contained over $20 billion
in earmarked funds for parochial projects.

     "The fiscal year 2008 Transportation Appropriations bill continues this
trend with more than $2.2 billion in earmarks," the letter said. "Ironically,
these two bills alone are laden with earmarked funding whose total would
approach the revenue amount lawmakers now seek from a tax hike."

     The groups said high energy costs would make a gasoline tax hike
especially difficult for low-income families and small businesses and warned
that "temporary" tax hikes tend to become permanent once Congress gets used to
the extra revenue.

     "Instead of resorting so readily to tax hikes, Congress and the executive
branch should conduct a review to determine which transportation projects are
really worth funding and which are unnecessary," the letter concluded.
"Elected officials should not be feeding more revenues into the gears of an
ever-faster spending machine, and we urge you to oppose any federal gas tax
hike."

		--Cathy Landry, cathy_landry@platts.com