Small Business Commends Rep. Giffords for Introducing the Diesel Tax Parity Act

WASHINGTON, D.C., July 21, 2008 - The National Federation of Independent Business, the nation’s leading small business organization, today thanks U.S. Representative Gabrielle Giffords (Ariz.-8th) for introducing H.R. 6487, the Diesel Tax Parity Act.

This bill will help small business owners that depend on diesel-operated vehicles to run their businesses by reducing the federal tax on diesel fuel from 24.3 cents per gallon to 18.3 cents per gallon. This equals the current federal tax rate on gasoline.

According to a 2006 NFIB Poll on Energy Efficiency, in response to higher diesel/gasoline prices, 18 percent of small business owners with business vehicles rescheduled or changed routing; 16 percent used fewer vehicles or used them less frequently; and 11 percent purchased more energy efficient vehicles.

“Energy costs are the second most troubling problem facing small business owners today,” said Dan Danner, executive vice president of NFIB. “In order for small business owners to continue to run and expand their businesses, Congress needs to do everything within its power to ease the burden of record high fuel prices. The Diesel Tax Parity Act does just that and will help many small business owners from cutting back on business.”

“Small businesses in Arizona, and across America, are disproportionately suffering from the spike in fuel costs – we are seeing the impact in the cost of construction, the price of a gallon of milk, and the slowing tourism industry,” said Giffords.  ”Local companies are laboring to offer affordable, quality products and services to customers struggling to make ends meet.     That is why I have introduced the Diesel Tax Parity Act to temporarily cut the federal tax on diesel fuel.   Congress needs to move quickly on this legislation and offer some relief to the foundation of our economy – small business.”

“NFIB commends Rep. Giffords for introducing the Diesel Tax Parity Act and looks forward to working with her to help Congress pass this important legislation,” said Danner.

U.S. Senator Olympia Snowe (Maine), ranking member of the Senate Small Business and Entrepreneurship Committee, introduced the Diesel Tax Parity Act, S. 2896, the Senate version of this bill, earlier this year.

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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists send their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system.

NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at www.NFIB.com/newsroom.

Please click here to read the release on NFIB’s website