The transportation sector of our economy includes railroads, motor vehicles, aircraft, and shipping. These all play an essential role in the operation of our economy. Furthermore, demands on the transportation industry have grown in step with the growth in the population and the growth in the economy.
All modes of transportation are capital intensive.
The railroad industry must install and maintain tracks upon which its trains travel as well as the expensive rolling stock required to operate the system. The motor vehicle industry is regularly challenged to produce more fuel efficient and safer vehicles, while government is called upon to expand and improve our highway system. The tax law historically has sought to address the special needs of the transportation sector, but it has not always provided uniform assistance. Regrettably there is an imbalance in how federal law addresses the unique needs of the various modes of transportation. For example, the tax law imposes an excise tax on highway motor fuels, the proceeds of which are deposited into the Highway Trust Fund.