ATD Applauds Efforts to Prevent Increasing Federal Excise Tax on New Trucks

American Truck Dealers (ATD) Chairman Steve Parker praised the introduction of legislation in the U.S. Senate to oppose any increase to the federal excise tax (FET) on new heavy-duty trucks. The current 12% FET on the sale of most new heavy-duty trucks is by percentage the highest levied tax by Congress on any product.

American Truck Dealers (ATD) Chairman Steve Parker praised the introduction of legislation in the U.S. Senate to oppose any increase to the federal excise tax (FET) on new heavy-duty trucks. The current 12% FET on the sale of most new heavy-duty trucks is by percentage the highest levied tax by Congress on any product.

Sen. Cory Gardner (R-Colo.) introduced S.Con.Res. 40, which puts the Senate on record opposing an increase of the FET. Companion legislation, H.Con.Res. 33, was introduced in the House by Reps. Reid Ribble (R-Wisc.) and Tim Walz (D-Minn.) last year and has 30 bipartisan cosponsors.

“The existing 12-percent FET on heavy-duty trucks, which adds nearly $20,000 to the cost of a new truck, is already a severe detriment to businesses looking to replace aging fleets with newer, safer and more fuel-efficient vehicles,” said Parker, who is also the president of Baltimore Potomac Truck Centers. “An increase in the FET would only further deter these important investments – investments that help keep our roads safer.”

The FET was originally imposed to help defray the cost of World War I. Since 1955, the excise tax rate on new heavy-duty trucks, tractors and trailers has increased by 300 percent, ballooning from 3 percent to its current rate of 12 percent.

All of the heavy-duty trucks sold in the U.S. in 2015 were manufactured in North America, so any increase in the FET would depress new heavy-duty truck sales to the direct detriment of the American trucking industry and their more than 8 million U.S. employees.

 

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