House, Senate Part Ways on Financing in FAA Reauthorization Measures

Aviation on tap in both Houses of Congress

Appropriators made it clear that lawmakers should not expect the trust fund to be bailed out by spending from the general Treasury, and that it would be up to the Finance Committee to remedy the problem.

The measure the committee will consider would add about $3.4 billion to the trust fund by temporarily prohibiting money from being transferred from it to the general Treasury for non-highway uses, including some transit purposes, and suspending tax credits for certain kinds of fuels, among other initiatives.

The draft also contains some provisions designed to combat fuel fraud, including changing the location where gasoline taxes are collected and imposing an excise tax on removing certain fuels from foreign trade zones.

Losses to the general Treasury caused by these changes would be offset by increasing the penalty tax on oil spills from 5 cents per barrel to 10 cents per barrel through the end of 2017, and moving up by one year the effective date of a law (PL 108-357) that prohibits "corporate inversions," whereby companies avoid paying U.S. income taxes by setting up post office boxes in tax haven countries.

The Senate Finance Committee markup is scheduled for 4 p.m. Thursday in 215 Dirksen.

Source: CQ Today Round-the-clock coverage of news from Capitol Hill. ©2007 Congressional Quarterly Inc. All Rights Reserved.

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