![]() Stanford Lewis pumps diesel fuel into his rig at Mr. T's gas station, which is part of TTT truck stop at Craycroft Road and Interstate 10. U.S. Rep. Gabrielle Giffords introduced a bill to cut the tax on that fuel from 24.3 cents a gallon to 18.3 cents, but critics say the move won't really lower fuel prices or other business costs.
Benjie Sanders / Arizona Daily Star
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Osmose Utilites Foremen Health Care ADMINISTRATOR General Border States Electric Warehouse Associates Mechanical Pioneer Landscaping Diesel Fleet Mechanics General Independent Fire & Safety Fire Suppression Systems inspector Health Care Project Insight Asst Program Coordinator Driver/Transportation DRIVERS Tucson RegionDiesel tax cut proposedGiffords says 6-cent drop would help businesses, consumers
arizona daily star
Tucson, Arizona | Published: 07.23.2008
U.S. Rep. Gabrielle Giffords is seeking to temporarily cut the tax on diesel fuel by 6 cents a gallon, a move she says would save consumers money once diesel-using businesses reap a financial reward.
Giffords has introduced a bill modeled after identical legislation being pushed in the Senate by Republican Sen. Olympia Snowe of Maine. The proposal would cut the federal diesel tax from 24.3 cents a gallon to 18.3 a gallon, the same rate as gasoline. The tax would go back up at the end of the year.
The cut would cost the federal government $892 million, according to figures provided by Giffords' congressional office.
But already the roll-back is being criticized by Giffords' opponent as an election-year gimmick that would do little to bring down gas prices or lower costs for businesses. And it is also up against reports that some in Congress are considering raising the tax on gasoline.
Giffords, a freshman Democrat in the middle of a closely watched re-election campaign, announced her sponsorship of the House version Friday against the backdrop of AGM Container Control, a local company that manufactures portable wheelchair lifts. She called it a "parity bill."
"You have industries that have built their business model around a less-expensive fuel, and now that fuel is more expensive," said Giffords.
Giffords didn't directly answer a question about whether she supports a tax holiday on regular gasoline, something proposed by Arizona Sen. John McCain, the presumptive GOP presidential nominee.
"I certainly applaud him for an innovative approach in terms of how to solve this problem," she said. But she stressed the need to bring the two taxes to the same level since diesel was once cheaper than gasoline. Diesel is now more than 62 percent higher in cost than it was last year, when it was cheaper than gas.
The gas-tax holiday — one that was also endorsed by former Democratic presidential candidate Hillary Clinton — was criticized, mostly by Democrats, as being a feel-good solution that would save consumers only about $30 on average and would cost the federal government about $10 billion.
The direct benefit to drivers from Giffords' legislation would be even smaller. Fewer than 2 percent of Arizonans drive diesel vehicles, which tend to be more efficient. Of total vehicles in the state, including commercial, about 3 percent are diesel.
Giffords' legislation would save the average person with a diesel vehicle somewhere between $1.50 and $3 a month.
Giffords' point, though, is that the savings for a business or a trucker would be higher. For a diesel-burning commercial truck driving an average of 500 miles a day, the saving would be about $150 a month.
Giffords and AGM's CEO, Howard Stewart, said at Friday's press conference that businesses have been disproportionally effected by the rise in diesel-fuel costs. In particular, Stewart said shipping costs have spiked.
"When our costs go up like this we're faced with ultimately having to raise prices," said Stewart, who donated $1,000 to Giffords' re-election campaign in February. "If we have to raise prices, we're going to have less business. If we have less business, I can't employ as many people."
Meanwhile, Giffords' Republican opponent Tim Bee — who himself owns a diesel van — knocked the idea. A spokesman for Bee said "it's not a solution at all. At the end of the election year, this expires."
"Real savings for small businesses will come when supplies increase and demands decrease," said spokesman Tom Dunn.
Giffords' also touched on other solutions she thinks will halt rising fuel costs, like alternative energies and opening up the national petroleum reserve — moves Bee has expressed support for as well.
In a follow-up interview, Giffords spokesman C.J. Karamargin stressed the congresswoman's view that the diesel tax should be brought in line with the gas tax — even if it's only temporary. "The goal of it is to give small businesses the boost they need to stabilize and reduce the cost of consumer goods," Karamargin said.
On drilling, the two candidates part ways. Giffords wants oil companies to drill in areas where they already have leases to drill. If they don't drill, she wants to take those leases away. Bee, meanwhile, wants to explore drilling in new areas, including offshore.
● Contact reporter Daniel Scarpinato at 307-4339 or dscarpinato@azstarnet.com.
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