As Congress prepares to wade back into the battle of the budget, a faint glimmer of sanity has emerged in the form of a House Resolution against an increase in the Federal Excise Tax (FET) on new heavy duty trucks and trailers.
The resolution notes the FET rate on trucks (12%) is already the highest rate of any excise taxes currently being collected. It also notes that regulations imposed on trucks between 2002 and 2018 have already and will continue to add an average of $30,000.00 to the price of a heavy truck.
Industry associations such as the Truck Renting and Leasing Association (TRALA) have voiced support for passage of the resolution.
Considering the size of the bite that the feds already get out of trucking’s pie, the resolution makes a strong case for not raising the current FET rate. Apart from the economic and employment impact on the new truck and trailer industry, the resolution also makes the point that an FET increase would “inhibit the sale of the cleanest, safest, and most fuel efficient heavy-duty trucks and trailers.”