Evening Leader - "Jordan backs tax break"

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Evening Leader - "Jordan backs tax break"

An area Congressman says a temporary suspension of the federal gasoline tax this summer could be weathered despite a projected $9 billion reduction in funds for federal highways. U.S. Rep. Jim Jordan, R-Urbana, said he favors the suspension of the federal tax on unleaded and diesel fuels during the summer months. Currently there is an 18.4 cent per gallon tax on unleaded fuel and a 24.4 cent per gallon tax on diesel. That revenue goes into the National Highway Trust Fund to help maintain the federal highway system.

"This will help families who are driving over the summer — we think it makes sense," Jordan told The Evening Leader Thursday in a conference call. "I think families are over-taxed and if we can reduce the tax burden, it just makes sense."

The proposal sparked a debate among presidential candidates as well as members of Congress. Republican John McCain and Democrat Hillary Clinton support the temporary tax suspension, while Democrat Barack Obama opposes the measure.

Opponents of the suspension claim the lost revenue could reach more than $9 billion and cost Americans thousands of jobs. However Jordan said the claims are exaggerated and there is enough money in the federal coffers to bridge the gap.

"If we held the line on spending, we would have been able to cover that cost," Jordan said. "This is something that is critical."

Jordan pointed to the amendments he offered last year to the spending bills passed by members of Congress. Those measures contained a reported $20 billion is savings Jordan said could be achieved by reducing spending.

As crude oil prices soar toward $150 a barrel, the cost of gasoline and diesel continue to climb. Jordan said with diesel prices surpassing the $4 per gallon mark, the gasoline tax holiday could benefit the trucking industry.

"We have a ton of trucking (in the 4th Congressional District)," Jordan said. "Right now, diesel is at $4 a gallon and it's tough on the trucking industry. (That's) all the more reason we should be focusing on domestic supplies and not taxing."

Jordan blamed soaring crude oil prices on speculators who push the price up for their own profit. As demand from China and India put a pinch on supplies, Jordan said legislators in Washington need to focus on increasing domestic sources of oil.

"This problem is largely a supply and demand concern," Jordan said. "We have to focus on getting more supply. Our economy is based on fossil fuels and it's going to be that way for the foreseeable future."

Ethanol efforts and other biofuels are ways to ween the United States off foreign oil, but Jordan said other avenues must be explored to maintain a steady supply of the fossil fuel.

Exploring drilling in the Arctic National Wildlife Refuge (ANWR) and off-shore sources would cause oil prices to fall, the Congressman said.

"There is a potential for 10 billion barrels that we could (retrieve) in an environmentally safe way," Jordan said.

"I am convinced the day the bill is passed to allow dripping in ANWR, you will see the price begin to go down before the first drill hits the ground."

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