American Trucking Associations is urging Congress to swiftly pass a bill that would repeal the 12% federal excise tax on large trucks and trailer purchases and replace the sales tax with a 6.3-cent increase in the 24.4-cent federal diesel fuel tax.
The bill was introduced last week by Rep. Jim Gerlach (R-Penn.) and co-sponsor Earl Blumenauer (D-Ore.). It was referred to the House Ways and Means Committee.
ATA President Bill Graves said passage of the measure would “reinforce the ailing” Highway Trust Fund, boost manufacturing and spread environmentally friendly technologies as carriers buy the newest models.
“It is exactly the kind of pro-growth, deficit-trimming legislation that lawmakers should be looking at as they seek to address our nation’s economic woes,” Graves said in a statement Tuesday.
Graves also said that when the economy slumps, truck sales slump, meaning the excise tax revenue stream that flows into the trust fund narrows.
“By collecting more in the diesel tax, the federal government could ensure a more stable and predictable source of funding for needed highway and bridge projects,” Graves said.
