LaMalfa’s proposed legislation, known as the Modern, Clean, and Safe Trucks Act of 2023, has gained bipartisan support and aims to abolish the outdated World War I-era tax.

“There is a federal excise tax specific to them of 12% on a new vehicle — 12%. Now, we want to promote newer, cleaner-burning and safer, better trucks to be on our highways, and so the disincentive for that is to hit them for a 12% tax on the purchase of that new vehicle,” said LaMalfa during a committee hearing Oct. 18 that examined the status of the federal Highway Trust Fund. “And as we note with the other forms of taxation — the Highway Trust Fund — there’s a user-pay, user-benefit aspect to all the other different forms of it, and this one here is not a user-pay, user-benefit because it’s indeed hidden every time you buy one of those new vehicles if you choose to do so.”

Fuel tax revenue supports the trust fund, providing essential funding for transportation projects. Proposed legislation seeks to repeal the federal excise tax, which could save truckers and small businesses up to $30,000. In addition to cost savings, this repeal would benefit the supply chain and consumers. The legislation also aims to promote using newer, safer, and cleaner trucks, reducing greenhouse gas emissions and decreasing reliance on foreign energy. While a vote has not yet been scheduled in the House, a companion bill has been introduced in the Senate by Senators Ben Cardin and Todd Young.

“It’s time to repeal this outdated and onerous tax on our Hoosier truckers,” Young said.

“Our legislation will spur growth and competitiveness while making our roads safer and less polluted,” Cardin said.

Join The Clean Freight Coalition, and the American Trucking Associations are urging Congress to take action. ATA President Chris Spear has already voiced his opposition to this tax during the federation’s conference.

“If the goal is to reduce emissions, eliminate the century-old federal excise tax,” Spear told freight executives at ATA’s 2023 Management Conference & Exhibition in Austin, Texas.

In April, ATA Chairman Andrew Boyle, co-president of Massachusetts-based Boyle Transportation, raised the point during a Senate hearing: “Eliminating the [federal excise tax] will reduce the cost of new technologies by tens of thousands of dollars and is a technology-neutral solution that allows companies to invest in not only battery-electric, but alternative fuel vehicles as well depending on the availability of infrastructure to support the specific technologies.”

In addition to ATA, Clean Freight Coalition members include American Truck Dealers, Natso, the National Motor Freight Traffic Association, the National Tank Truck Carriers, and the Truckload Carriers Association.

Source: Transport Topics

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In his keynote speech, he detailed the impact of the WWI era 12% tax on freight stakeholders. The tax results in “roughly $25,000 per power unit,” Spear said.

ATA is in opposition to the tax, along with other industry leaders. Together, they indicate that its repeal would assist the industry with modernizing fleets. The ATA and other stakeholders regularly call on Congress to eliminate the excise tax.

Spear went on to call attention to the need to reform aspects of the justice system. He cited this as central to ATA’s policy priorities and categorized lawsuit abuse as an ongoing threat to the truck driving industry.

“Trial lawyers chasing jackpot justice, self-promoting union bosses, and delusional environmental extremists. Together, they constitute a clear threat to our industry’s ability to grow and support our nation’s economic security,” Spear said. “If you belong to a state association and want to put trial lawyers on their heels, speak up. Help make lawsuit abuse a priority in your state capital. Lend your support and testimony. Jackpot justice has no place in the courtroom and no place in our industry.”

As his comprehensive keynote address continued, he praised truck drivers for their essential role in the nation’s supply chain. He emphasized the recent federal action to expand truck parking capacity, where the U.S. Department of Transportation awarded more than $80 million in grants for both highway safety and parking programs. Specifically, agencies in Louisiana, Florida, and Tennessee were presented with grants to fund additional truck parking.

Spear then transitioned into the importance of diversity across the entire industry and firmly established supporting the movement toward ever-increasing diversity as a mission of the ATA. He pointed to Women In Motion as a response to recruit and retain more female truck drivers.

“The purpose of Women In Motion,” according to ATA, “is to promote and support the advancement of women in the trucking industry by providing access to robust training, mentorship, and networking programs, advocating for policies and practices that create a level playing field for women in the industry, and fostering communication and collaboration among women and their allies.”

“These are today’s stakes, which underscores why advocacy matters,” Spear said. “Without a seat at the table, our industry — our way of life — could look entirely different over the next decade. Which is why we must evolve and adapt more quickly than any threat that comes our way.”

Source: Transport Topics

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