Carriers massively support duty cancellation on new trucks
Representatives of the cargo industry supported the passed bipartisan law to abolish the 12% federal excise tax (FET) on the sale of trailers and trucks.
Bill S. 2435 was introduced by Senator Todd Young (Indiana) and Senator Ben Cardin (Democrat), who are members of the Senate Finance Committee on Transport Related Taxes.
A coalition of concerned parties of cargo industry, including the American Truck Dealers (ATD), the American Freight Forwarding Associations and other groups, say that tax cancellation will help modernize the American truck fleet and protect the 1.3 million jobs supported by the US cargo industry.
The abolition of the FET will allow fleets to replace old trucks with newer, safer and more environmentally friendly ones.
The coalition also calls on Congress to include the Young / Cardin Act in bipartisan infrastructure legislation.
The FET was first adopted by Congress in 1917 to help fund the First World War. It represents the highest percentage excise tax that Congress levies on a product, often adding more than $ 20 000 to the price of a new heavy-payload truck.
“As most trucks are over ten years old, passing this law is critical for helping America modernize its aging truck fleet,” said Steve Bassett, chairman of ATD and general dealer of the General Truck Sales in Muncie, Indiana.