Page 32 - ATR 1 2012 web 2

cheaper Trucks, More

Expensive fuel

Bill would end excise tax, replace it with diesel fuel tax

dealerships and also from Paccar and
Freightliner, which have operations in
Oregon. New truck sales had collapsed
in the economic downturn, and the
federal excise tax was seen as amplify-
ing the problem. The staff member said
the bill would make it easier for truck
makers to sell their products and for
trucking companies to plan their fleet
updates.
The bill stalled because transporta-
tion financing as a whole is mired in
congressional politics. Congress is two
years late reauthorizing the highway bill
and has been funding the nation’s roads
and bridges through continuing resolu-
tions.
“In the absence of passing a trans-
portation authorization bill, Congress
really wasn’t examining those questions,
so there was no good forum to bring
some of that stuff up,” the staff member
said.
By steve Brawner sales with the diesel tax increase. Sean McNally, vice president of
Contributing Writer However, a member of Blumenauer’s communications and press secretary
staff, who asked not to be identified, said for the American Trucking Associations
A bill that would repeal the 12 per- concerns arose about drivers of diesel- (ATA), said the ATA supported the bill
cent federal excise tax on heavy trucks fueled passenger cars who would be pay- in 2010 and expects to support it again
and trailers and replace it with higher ing higher taxes to replace the federal for several reasons, including the ATA’s
diesel taxes is being studied and should excise tax (FET). belief that it would be good for infra-
be introduced early this year. The bill is being studied by the Joint structure and that it would reduce the
Rep. Earl Blumenauer (D-Ore.) Committee on Taxation, a group of non- price of a new truck by 12 percent.
introduced the Heavy Truck Fairness Act partisan economists and tax attorneys, “It encourages the production of
in late 2010, which would have raised to come up with a rebate plan for pas- trucks,” McNally said. “We think that
the current 24.3 cents per gallon diesel senger car owners. That means the diesel can be a boost to the economy. We also
tax by 7.3 cents per gallon, with the pro- tax increase will have to be more than think that it’s a more fair way to levy
ceeds going to the Highway Trust Fund, 7.3 cents a gallon, though how much highway user fees. A lot of folks purchase
but without a single cosponsor, the bill isn’t certain. their trucks used, so they don’t pay the
was referred to the Ways and Means “I would anticipate a modest FET. Substituting a higher diesel tax
Committee. increase, but not a substantial one,” the captures a broader segment of the popu-
The original bill’s intention was to staff member said. lation and distributes that tax burden
be revenue neutral and to make up the The bill was introduced in 2010 more fairly.”
difference caused by the loss of truck under prodding primarily from truck McNally said another reason to

32 arkansas truCking rePort | issue 1 2012