Truckers Excited Over Bill To Repeal Truck Tax

Truckers Excited Over Bill To Repeal Truck TaxThere was recently a new bill that was introduced in the U.S. House by Representative Collin Peterson (D-Minn.) and Representative Doug LaMalfa (R-Calif.). It is titled, the “Modern, Clean and Safe Trucks Act of 2019? – H.R. bill 2381.” This bill drew a lot of praise from members of the trucking industry because it has attempted to repeal the federal excise task (FET), which was a tax that’s been levied on a lot of the new heavy-duty trucks and trailers that are on the market today.

The Bill’s Purpose

Peterson and LaMalfa decided to introduce these bills in hopes of rolling back the FET, which is now 102-years-old. When this tax was initially created it was done to help finance WWI. At that time the tax added the delivery of an additional $12,000 – $22,000 to the cost of each new vehicle or trailer that’s sold.

Why Repeal the FET

Unfortunately, this tax has discouraged many truckers from buying the newest, safest, and cleanest trucks and trailers for the delivery of their products. These often contain things like tracking devices that help locate the truck and its contents when necessary. This is something that concerns Jodie Teuton who’s the chairwoman of the American Truck Dealers (ATD) and who’s also responsible for steering the Modernize the Truck Fleet (MTF) coalition.

LaMalfa says that in the century since the creation and introduction of the FET the tax has almost quadrupled – going from 3% – 12%. This inflation really has drove truckers away from purchasing a new vehicle or trailer. He feels that this tax is not only outdated, but that it’s also creating an unnecessary barrier that’s only served to discouraged truckers from having the best equipment possible for their jobs. He’s gone so far as to show that this is tax has the highest percentage of any tax on any product today. Nevertheless, he feels that this isn’t a reliable source of funding for anything – not even for funding the Highway Trust Fund, which is what some members of the U.S. House are arguing that it’s necessary for. This is because most truckers can’t afford another $20,000 on top of the already high cost of their new truck so they simply don’t buy them. Instead, they continue buying older trucks that aren’t very fuel-efficient and that have outdated technology. These trucks also continue to destroy air quality and limit economic growth.

Who’s Driving This Bill

This bill is being driven by the MTF, which was created in January 2019. They represent a broad spectrum of businesses who are involved in the trucking industry (e.g. the National Trailer Dealers Association, the Association for the Work Truck Industry (NTEA), the National Tank Truck Carriers, the Truck and Engine Manufacturers Association, the American Truck Dealers, the Truck Renting and Leasing Association).

Currently this bill is being considered by the House Ways and Means Committee. However, if you don’t want to wait to rely on the latest and greatest trucks for the delivery of your products, make sure you call upon Same Day Delivery. They have everything you could possibly desire in a modern vehicle, including tracking.

Picture Credit: DEZALB