This week, lawmakers launched a bipartisan invoice that might repeal a long-standing tax on the acquisition of latest heavy responsibility vehicles.
The Trendy Clear and Protected Vans Act of 2023 invoice was launched on March 8 by U.S. Senators Ben Cardin (D-Md.) and Todd Younger (R-Ind.).
The invoice would remove the federal excise tax (FET) on heavy vehicles and trailers, which lawmakers say was “established over 100 years in the past to assist efforts to pay for World Conflict I.” The FET was first levied by Congress in 1917.
The FET is 12% of the sale worth, reportedly the very best excise tax positioned on any product within the U.S., and “routinely provides between $12,000 and $22,000 to the price of a brand new heavy truck, tractor, or trailer,” in keeping with the textual content of the invoice.
Lawmakers argue that repealing the FET would incentivize fleets to modernize to cleaner and safer vehicles and trailers.
“It’s time to repeal this outdated and onerous tax on our Hoosier truckers,” stated Senator Younger. “Our bipartisan invoice will open the floodgates to funding in safer and cleaner vehicles and trailers that may profit our economic system and the surroundings.”
The invoice is supported by the American Trucking Associations (ATA).
“The federal excise tax on purchases of vehicles provides practically $25,000 to the price of new tools – slowing deployment of safer and extra environmentally pleasant automobiles,” stated ATA President and CEO Chris Spear. “This greater than 100-year-old tax – first instituted to assist American troops in the course of the First World Conflict, has far outlived its usefulness and now acts as an obstacle to creating jobs, lowering emissions and enhancing freeway security.”