House Democrat: We Don’t Have the Votes for Gas Tax Increase

Rep. Michael Capuano (D-MA), a member of the House transportation committee, took to some less-than-friendly airwaves yesterday to tout an innovative plan for funding the next federal transportation bill: imposing a small tax on Wall Street oil traders.

In an interview with Fox Business Channel's "Happy Hour" -- conducted from what appears to be a working bar (watch it in full here) -- Capuano parried one anchor's suggestion that the tax is an attempt to "tax the crap out of" financial firms that have become radioactive in the post-bailout age.

And in the process, Capuano put his finger on an unfortunate political reality.

The lawmaker said (emphasis mine):

Capuano reiterated the point one more time in the interview, telling Fox he would be fine with "taxing the end user" of highways to pay for a new transportation bill but adding that "right now, there are not the votes in Congress for it."

This funding dilemma is more than just a pesky hurdle; it is the central problem facing transportation-minded members of Congress.

The president, whose popularity would be essential to help make the public case for a gas-tax increase, has flatly withheld his support. The House's bid to press on with transportation reform that lacks a reliable revenue source has been greated with disapproval in the Senate and scorn from one corner of the mainstream media.

Backers of the oil-traders tax, first floated last week by Rep. Pete DeFazio (D-OR), project that it would cover the gas-tax shortfall that must be filled in order to pass the $500 billion House transportation legislation. Until senators begin suggesting similarly substantive revenue raisers, the White House's plan for an 18-month extension of current law remains the most likely outcome this summer.