Two long-standing truck taxes are in the industry’s crosshairs for suspensions that would provide transitority relief to independent drivers and hauliers, the COVID-19 recession that further lobbied the trucking industry.
The Owner Oconsisist with the Independent Drivers Association (OOIDA) needs Congress to suspend the Heavy Vehicle Use Tax (HVUT), which can save heavy car owners more than $500 according to the truck. Other industry groups, such as the American Trucking Association (ATA), are mobilizing to suspend the 100-year federal special tax on new trucks and trailers.
Truck purchases fell through 70% of the coronavirus pandemic, according to ATA President Randy Guillot, who recently told the House’s Infrastructure and Transportation Committee that it could be recovered if Congress did one thing: suspend federal excise duty (FET) on new trucks and trailers
At the end of July, Representative Chris Pappas (DN. H.) sent a letter to Democratic leaders in the U.S. House of Representatives requesting the suspension of 12% of FETs on trucks and heavy trailers to be included in the next coronavirus stimulus bill. Pappas needs the tax, which can charge $20,000 at the cost of a new truck, which will be removed from the books until 2021.
The American Truck Dealers (ATD) created the Truck Fleet Coalition Modernization to oppose the FET, which is the percentage of federal consumption tax in the États-Unis.La coalition, which includes 196 industry teams and the UAW, encouraged House Democrats to point out Pappas letter requesting the suspension of the FET. Coalition and other industry teams continue to note that the FET, along with declining sales of heavy trucks and trailers, is a barrier for carriers to upgrade their fleets, preventing cleaner, safer, and more fuel-efficient trucks from replacing older cars on the roads. Training
This is supported by an ATA member survey that showed that 60% of fleets were more likely or most likely to buy new trucks and trailers if the FET was suspended this year. Currently, more than a portion of The Class 8 trucks on the road are over 10 years old, according to the ATA. “We would like to start buying appliances again, and suspending the FET would be a smart way to inspire the trucking industry to buy new and better appliances and get our brands back up and running,” Guillot told Congress. June.
Pappas’ July letter, signed through 55 House Democrats, was sent to President Nancy Pelosi and the House Democratic leaders, urging them to suspend theFET on the upcoming COVID relief bill, which both sides are negotiating in Washington.
The previous Senate Republican coronavirus search package, introduced last July, did not include a FET suspension on the $1 trillion economic stimulus bill that prolonged unemployment benefits, liability reform, and small business relief.
In his letter, Pappas highlighted the effect of the pandemic on the trucking industry and called for the suspension of the FET until 2022. “The suspension of 12% of the FET on new trucks and heavy trailers during this critical time can help. fleets acquire new trucks and trailers. The matrix helps manufacture trucks and trailers in the United States, the work of suppliers and distributors, and promotes our goals of improving road protection and reducing emissions,” Pappas wrote.
Steve Bassett, PRESIDENT of ATD and leading general truck sales agent in Muncie, Indonesia, called an imaginableFET suspension “an ideal drug for the U.S. trucking industry during this pandemic.” He also noted that the Class 8 truck and trailer production industry supports 1.3 million jobs in the United States, and only about 8 million Americans in truck-related jobs. He later suggested truck runners touch their U.S. senators and suggested they come with the FET suspension on the next COVID-19 Relief Bill.
Along with pushing for FET’s temporary end, the Owner-Operator Independent Drivers Association (OOIDA) has its sights on the Heavy Vehicle Use Tax (HVUT). The group, representing more than 160,000 owner-operators, said Congress could provide immediate economic relief to small-business truckers by suspending the annual $550 fee levied on each commercial truck.
“Truckers are still on the front lines, filling store shelves and supplying hospitals,” said Todd Spencer, president of OOIDA. “Suspending the HVUT is a way that Congress could easily offer fast, direct relief to all motor carriers. And believe me, they need it, much more than just a ‘thank you.’”
On July 30, OOIDA sent a letter to both House and Senate leadership sharing worries about how the COVID-19 recession has reduced freight rates and created considerable uncertainty for commercial drivers.
The annual HVUT costs between $100 and $550 per truck, depending on its weight. OOIDA noted that while suspending the FET would benefit owner-operators and carriers looking to purchase new trucks, an end to the HVUT would have a more immediate benefit to more owners and carriers.
“Congress and the American public praised truckers for their paintings on the front line of this crisis,” Spencer added. “This action would provide tangible and meaningful assistance to carriers of all sizes, not just those who are giant enough to have the resources for new appliances in the midst of a historic economic downturn.”
Congress created the HVUT in 1982 as a means of charging heavy cars for truck damage. The FET, however, has been in the books for over a hundred years. It was first imposed in 1917, World War I, to help finance the army. It was a tax consistent with 3 cents at the time and has risen to 12 consistent penny today, which can charge about $22,000 to the value of a new Class 8 vehicle.
Bodybuilders of trailers contributed to this item.
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