Key facts
- US Senators Todd Young and Angela Alsobrooks proposed ending the 12% federal excise tax on heavy-duty trucks.
- The tax adds between $15,000 and $30,000 to the cost of a new heavy truck.
- Lawmakers argue the tax encourages the use of older, less efficient vehicles.
- The tax generates over $6 billion annually for road repairs.
- The tax was implemented in 1983.
US Senators Todd Young and Angela Alsobrooks have introduced legislation to repeal the 12% federal excise tax on new heavy-duty trucks, a tax that has been in place since 1983. They stated the tax adds significantly to the cost of new vehicles, potentially up to $30,000, and incentivizes the continued use of older trucks. This tax generates over $6 billion annually, which is dedicated to road repairs. The proposal aims to reduce costs for the trucking industry and encourage the adoption of newer, cleaner, and more fuel-efficient models.