Page 33 - ATR 1 2012 web 2

the bill stalled because traNsportatioN 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 resolutioNs.

change the federal excise tax is because 2002, 2004 and 2010. Those regulations of counterproductive,” Treadway said.
it currently taxes the entire new truck have raised the price of a new Class 8 “Even though we’re producing cleaner,
price, including the cost of safety add- tractor by almost $25,000, he said. greener trucks, people can’t afford them.
ons that are part of the purchase. That “The average truck, I think today is So we’re in favor of repealing FET on
“discourages the proliferation of safety like $126,000 to $130,000,” Treadway heavy trucks so we can get them out
technology to an extent,” he said. said. “At the beginning of the millen- there in use.”
McNally said ending the tax would nium, they were less than $100,000.” According to Treadway, the reduc-
encourage fleet owners to replace their More regulations will come online tion in new truck sales has diminished
current trucks with cleaner, more fuel- in 2014 and 2017 that could raise the the Highway Trust Fund. He added that
efficient technology. price of a new truck another $12,000 to taxing diesel fuel would spread the cost
Kyle Treadway, who until this $14,000, Treadway said. Those regula- across the life of the equipment rather
February has served as chairman of the tions focus more on fuel efficiency but than concentrating it at purchase and
American Truck Dealers, said his organi- include further emissions regulations. would represent a true user tax based
zation is strongly in favor of the act. While previous rounds focused on upon miles traveled.
Treadway, president of Kenworth nitrous oxides and particulates, the next Obtaining support for the measure
Sales Company, which operates 18 loca- two rounds will include carbon dioxide has been difficult in the past. “We’ve
tions in the western part of the country, curbs. been knocking on a lot of doors, and
said ending the federal excise tax par- But cleaner trucks don’t do any good so far, because the tradeoff has been an
tially would offset new truck price hikes for the environment if they can’t get off increase in fuel taxes, it’s been kind of a
caused by three sets of EPA emissions dealers’ lots. “It’s devastated the volume nonstarter because it has the word ‘tax,’”
regulations that went into effect in of sales for the trucks, so it’s been kind he said.

bying initiatives for 2012. tem there is—the federal fuel tax.
highway bill, The Chamber recently sent a letter Even shippers, the people who actu-
Continued from page 22 signed by hundreds of companies to all ally pay the freight bills, are willing to
higher fuel taxes. “But I’ll take a long- members of Congress urging them pass a consider higher rates. A majority of board
term bill with what we’re spending now long-term highway bill. members of NASSTRAC, the shipper
instead of letting it all lapse and having “The long-delayed reauthorization organization, recently voted in favor of
a 30 or 35 percent cut [in the Highway of federal highway and public trans- advocating an increase in the fuel tax as
Trust Fund]. portation programs is a major piece of long as that money was reserved for sur-
“We haven’t had an increase in the unfinished business that can provide a face transport needs.
federal fuel tax in 18 or 19 years. Do you meaningful boost to the U.S. economy “I am very proud of our industry,
know we all have cars with a lot more and its workers and already has broad- which has been very vocal in saying, ‘Let
miles per gallon? You’re paying less and based support,” the Chamber’s letter says. us lead. Let us pay more,’” says Williams
there’s more wear and tear on the roads. Without increased revenue, the of Maverick. “We as a country have to
“We need to deal with that issue,” Highway Trust Fund is projected to go find leaders who have the political will.
Donohue concluded. “We are all over broke within two years—but there are If that means increasing fuel taxes and
it. It has got to happen. It is the simplest some who say it could happen as early as that’s in the best interest of the nation,
way to do something that makes us more this summer. we have to find leaders who are willing to
competitive, far safer and creates a lot of Industry leaders say it’s time to quit do that.”
jobs.” putting our fingers in the financial dyke “We understand the gas tax is
And Donohue is not just talking. He and put some serious money into the DOA,” says Mike Regan, president of
listed increased spending for infrastruc- nation’s highways and bridges through
ture first in the Chamber’s top five lob- the most efficient and time-honored sys- 

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