WASHINGTON – US Sens. Ben Cardin, D-Md., And Todd Young, R-Ind., Introduced the Modern, Clean and Safe Trucks Act of 2021.
The bipartisan bill would repeal the federal excise tax on heavy trucks and trailers, which was introduced more than 100 years ago to aid efforts to fund World War I.
Today, the 12 percent FET is the highest consumption tax rate charged on a product, while also being an unpredictable and minimal source of income for the Highway Trust Fund. According to a press release, the tax also discourages private investment to modernize the American truck fleet with cleaner and safer trucks and trailers.
“Our tax policy is one of the most effective ways Congress can promote cleaner, greener technology,” Cardin said. “The current federal excise tax has become an obstacle to progress. I am proud to support Maryland manufacturers in their efforts to innovate and use clean and safe technology in our trucking industry. Our legislation will stimulate growth and competitiveness while making our roads safer and less polluted. “
“It is time to lift this outdated and burdensome tax on our Hoosier truckers,” said Young. “Our bipartisan bill will open the floodgates to investment in safer and cleaner trucks and trailers that will benefit our economy and the environment.”
“On behalf of the trucking industry, we thank Sen. Young and Sen. Cardin for their bipartisan legislation repealing the FET that will result in cleaner and safer trucks on the roads,” said Steve Bassett, American Truck Dealers chairman and chief executive officer General Truck Sales in Muncie, Ind. “With most heavy trucks over 10 years old, getting this bill through is critical to helping America modernize its aging truck fleet.”
“Cummins supports the efforts of Sens. Young and Cardin to remove the obsolete and onerous federal excise tax on heavy trucks. This tax penalizes those who want to use the cleanest and most advanced technologies to reduce emissions and improve safety, and its removal will help ensure that the most efficient technologies are used. We applaud Sen. Young and Cardin’s leadership in this important issue for the environment, our customers, and our communities, ”said Jennifer Rumsey, president and chief operating officer of Cummins Inc.