Trucking group praises large truck proposal

Via BizJournals

A trucking industry leader is calling on Congress to quickly adopt a proposal to repeal the 12 percent federal excise tax on large trucks and replace it with a modest increase in the federal diesel fuel tax. That move likely would provide a boost to Dayton-area trucking companies that rely on heavy trucks for the bulk of their business.

Bill Graves, president and CEO of the American Trucking Associations, made a public plea for swift action on the H.R. 4321, which was introduced Tuesday by U.S. Reps. Jim Gerlach, R-Pennsylvania and Earl Blumenauer, D-Oregon. He said the proposal would reinforce the ailing Highway Trust Fund and provide a boost to U.S. manufacturing and speed adoption of environmentally friendly technologies.

“It is exactly the kind of pro-growth, deficit-trimming legislation that lawmakers should be looking at as they seek to address our nation’s economic woes,” Graves said.

The bill would eliminate the federal excise tax on heavy truck sales and replace it with a 6.3-cent increase in the federal diesel tax.

“Revenues from the excise tax are only paid into the Highway Trust Fund when new trucks are purchased, but when truck sales slump, it puts even more pressure on the already overextended fund,” Graves said. “By collecting more in the diesel tax, the federal government could ensure a more stable and predictable source of funding for needed highway and bridge projects.”

In addition, he said eliminating the excise tax will cut more than $15,000 from the cost of the average new truck.