Transportation Tax Equity and Fairness Act

The Transportation Tax Equity and Fairness Act (S. 661) proposes to eliminate the specific federal excise tax currently applied to fuel used by railroads and inland waterway vessels. Under this bill, the money saved by these transportation industries would be partially offset by a new requirement for railroads to contribute to the Leaking Underground Storage Tank Trust Fund, which finances the cleanup of petroleum leaks. For the average citizen, this legislation aims to lower operating costs for freight transport, which could potentially reduce the price of goods moved by rail or barge while ensuring railroads contribute to environmental safety funds.