U.S. REP. GABRIELLE GIFFORDS ANNOUNCES INTRODUCTION OF LEGISLATION TO CUT FEDERAL TAX ON DIESEL FUEL

U.S. Rep. Gabrielle Giffords today visited an employee-owned company in Tucson to announce legislation aimed at helping small businesses by temporarily cutting the federal tax on diesel fuel.

Speaking at AGM Container Controls Inc., the Tucson lawmaker said she has introduced the Diesel Tax Parity Act, which would temporarily reduce the federal tax on diesel fuel from 24.3 cents per gallon to 18.3 cents per gallon, putting the diesel tax on par with the current federal tax on gasoline.

"The higher tax on diesel fuel means higher business and consumer costs - with today's economy, that doesn't make sense," Giffords said. "It is a holdover from the days when diesel was less expensive than gasoline. Those days are gone. Diesel prices are breaking new records and are now approximately 70 percent higher than they were at this time last year. Small businesses that depend on diesel-fueled vehicles are bearing the brunt of this burden. My bill is intended to provide some much-needed relief."

Giffords' bill is strongly supported by the National Federation of Independent Businesses, a nonprofit, nonpartisan organization that represents small businesses like AGM. It is a companion bill to legislation introduced in the Senate by Olympia Snowe of Maine.

"Congress needs to move quickly to enact this legislation," Giffords said. "It will offer some immediate relief to local companies and consumers."

In a July 15 letter, Dan Danner, NFIB's executive vice president, praised Giffords for introducing legislation that addresses a troubling problem confronting small business owners. "Your effort to reduce the diesel fuel tax will go a long way to helping small-business owners continue running their businesses without rescheduling routes or using vehicles less frequently," he wrote.

Joining Giffords at today's announcement was Howard N. Stewart, president of AGM; Gillian Betzold of NFIB; and Colleen Crowninshield, the Clean Cities Program Manager for the Pima Association of Governments.

AGM Container Controls manufactures portable wheelchair lifts and environmental control hardware for the container industry. The company's hardware is used to protect products such as missiles, engines and sophisticated electronics from humidity, shock and breakage during storage and transportation. AGM has received numerous state and national honors, including the Workplace Excellence award from the Society of Human Resource Managers; the Gold Award from the United Way of Tucson and Southern Arizona; and the Southern Arizona Smart Inspiring Enterprise Award in customer service from the Arizona Small Business Association.

"Small businesses like AGM are the backbone of our economy," said Giffords. "Here in Southeastern Arizona and across our nation, small businesses play a pivotal role in keeping our country on the road to prosperity. Our job in Congress is to make sure small businesses can compete on a level playing field. That is what my bill aims to do."