TRALA Supports House Resolution Opposing FET Increases
TRALA is supporting legislation introduced this week in the House of Representatives opposing increases in the 12% federal excise tax (FET) on heavy-duty trucks and trailers and encouraging the U.S. Congress to review the negative impacts of the existing tax. The bi-partisan legislation, House Concurrent Resolution 52, was introduced by Representatives Reid Ribble, (R-WI) and Tim Walz, (D-MN). TRALA supports this legislation as part of its ongoing efforts to prevent unnecessary federal mandates that further increase the cost of purchasing and leasing trucks and trailers.
While TRALA supports a robust, well-funded Highway Trust Fund (HTF), the FET on trucks and trailers is an ineffective and volatile means of funding the HTF. The availability of FET monies to fund the Highway Trust Fund is closely tied to the economy and cycles in truck and trailer purchasing. This results in an unpredictable flow of funds into the HTF, which is detrimental to many road and bridge construction planning processes.
TRALA members are responsible for purchasing and registering between 35-40% of all the trucks put into commercial service in the United States every year. The fleets of leased and rented commercial trucks owned by TRALA members are well-known as the newest, environmentally cleanest, safest and most technologically advanced fleets on the road today. However, federal equipment and performance mandates play a major factor in continuing to dramatically increase the cost of new trucks and trailers. An increase in the already-prohibitive 12% excise tax on trucks and trailers would further inhibit the ability of fleets to add newer vehicles and consequently slow the introduction of newer environmental and safety technologies onto the nation's highways.
The passage of House Concurrent Resolution 52 will not result in a statutory prohibition against raising the FET. However, its consideration and passage will send a strong message to Congress and the White House as they consider comprehensive tax reform and alternative funding mechanisms for the Highway Trust Fund that raising the FET is not the right solution.
You may view a copy of House Concurrent Resolution 52 by clicking here.
If you have any questions regarding the House Resolution or the FET issue, please contact Jake Jacoby at email@example.com or 703-299-9120.