Cargo Tax Proposed to Raise Revenue for US Infrastructure

Representative Ken Calvert, R-Calif, proposed the On Time Act which, if approved, would add a 0.075 percent ad valorem "national trade gateway corridor" fee on imports and exports.  The funds gained from collection of this fee would be used to fund a trust fund of the same name.  The fund would be maintained by the Department of Transportation.

The bill states that the DOT would award grants from the trade gateway funds for states to spendon projects within designated trade corridors.

A similar bill was introduced by Senator Calvert in 2008, along with a bill sponsored by Rep. Laura Richardson, D-Calif.  BOth bills died at the end of sessions of the 110th Congress.

Should this bill pass, importers would see a 60% increase in transportation taxes.