Legislation to repeal a World War 1-era tax on new heavy-duty trucks, tractors and trailers was recently introduced in the U.S. House of Representatives, Transportation Topics reports. Rep. Doug LaMalfa (R-Calif.), a senior member of the Transportation and Infrastructure Committee, has renewed an effort to repeal this 12% federal excise tax on certain commercial vehicles. The Modern, Clean and Safe Trucks Act, was reintroduced on March 27 following unsuccessful attempts to get the legislation passed during recent sessions of Congress.
Lead co-sponsors of the legislation include Reps. Darin LaHood (R-Ill.), Max Miller (R-Ohio), Chris Pappas (D-N.H.) and Salud Carbajal (D-Calif.). The lawmakers argue the tax can add $15,000 to $30,000 to the cost of new heavy trucks, trailers and semitrailer chassis. “Repealing the outdated federal excise tax on heavy-duty trucks — which was first enacted over a century ago — is essential to modernize our transportation sector and help reduce emissions,” said Carbajal, also a member of the transportation committeed.
“For over a century, the federal excise tax on heavy-duty trucks has gone from a temporary wartime measure to fund World War I, to an outdated tax that punishes truck buyers,” said LaMalfa, on what has become one of his key issues. Proceeds from the tax are directed to the Highway Trust Fund the primary funding source for the federal highway program. According to the sponsors, “This is the highest percentage-based tax Congress imposes on any product, yet it fails to be a reliable source of funding for the Highway Trust Fund. This tax forces buyers to stick with older, less efficient models and makes it harder for truckers to modernize their rigs, holding back the trucking industry from updating.”