By: Craddick H.C.R. No. 125 73R8819 MPC-D CONCURRENT RESOLUTION 1-1 WHEREAS, The Clinton administration's budget proposal for 1-2 fiscal year 1994 includes a provision that would increase the 1-3 inland waterways fuel tax by $1 per gallon; and 1-4 WHEREAS, A raise in the inland waterways fuel tax from 19 1-5 cents to $1.19 per gallon would mean a 500-percent tax increase for 1-6 the approximately 800 barge and towing companies constituting the 1-7 United States inland water transportation industry; and 1-8 WHEREAS, This tax would be imposed on an industry that 1-9 employs 180,000 people nationwide and hauls 15 percent of the 1-10 nation's freight, 30 percent of the nation's petroleum and 1-11 petroleum products, one-fourth of all coal, and over half of the 1-12 nation's export grain; and 1-13 WHEREAS, Texas is the leading maritime state in the nation, 1-14 with 75 percent of Texas goods shipped by water and 20 percent of 1-15 the state's gross product linked to waterways; and 1-16 WHEREAS, If enacted by the United States Congress, the tax 1-17 would drastically increase prices on goods shipped through the 1-18 Houston Ship Channel and Gulf Intracoastal Waterway, creating 1-19 highly detrimental consequences for the Texas economy; and 1-20 WHEREAS, Because Texas petrochemical plants rely heavily on 1-21 barges to supply feedstock and to move finished products, a tax 1-22 increase of this magnitude would jeopardize the international 1-23 competitiveness of the state's refineries; and 1-24 WHEREAS, The proposed increase in the inland waterways fuel 2-1 tax would mean lost jobs for Texans, the elimination of spin-off 2-2 employment opportunities, and increased prices for consumers on 2-3 everything from livestock feed to petrochemical products; and 2-4 WHEREAS, In a nonbinding resolution, the United States Senate 2-5 recently voted to remove the inland waterways fuel tax from the 2-6 budget package, but the House of Representatives included the 2-7 provision in its adopted budget resolution; and 2-8 WHEREAS, The Texas inland barge and towing industry is the 2-9 most economical, safe, and efficient mode of surface transportation 2-10 available and is a vital component in helping Texas goods to be 2-11 competitive in today's global market; the administration's proposed 2-12 tax increase would impose an overly harsh burden on the economy of 2-13 Texas; now, therefore, be it 2-14 RESOLVED, That the 73rd Legislature of the State of Texas 2-15 hereby strongly urge the Congress of the United States not to adopt 2-16 the administration's proposed inland waterways fuel tax increase; 2-17 and, be it further 2-18 RESOLVED, That the Texas secretary of state forward official 2-19 copies of this resolution to the president of the United States, to 2-20 the speaker of the house of representatives and president of the 2-21 senate of the United States Congress, and to all members of the 2-22 Texas delegation to the congress with the request that this 2-23 resolution be officially entered in the Congressional Record as a 2-24 memorial to the Congress of the United States of America.