U.S. House Lawmakers Call For Temporary Suspension Of 12 Percent Excise Tax on New Trucks, Trailers
A group of lawmakers in Congress led by U.S. Rep. Chris Pappas (D-NH) are proposing to suspend a World War I era excise tax on the purchase of new Class 8 trucks and trailers.
The group is seeking to temporarily suspend the 12 percent federal excise tax purchasers are levied on new truck units through 2021.
The temporary suspension of the truck tax is important to equipment manufacturers because it could reduce the price of new trucks and trailers by as much as $21,000 per power unit.
Lawmakers argue that rolling back the tax is not only beneficial to fleet owners, manufacturers and the 1.3 million workers they employ, but also creates a powerful incentive for upgrade to new, safer, more fuel-efficient and cleaner equipment.
The increase in safer and more fuel-efficient equipment on the road offsets the temporary reduction in Highway Trust Fund receipts caused by suspension of the tax lawmakers argue.
Supporters of the tax suspension are urging House Speaker Pelosi to include a temporary repeal provision in an upcoming COVID-19 relief package.
