zzdcar
Home
/
Reviews
/
Automobile information
/
Why the Trucking Industry Actually Supports Higher Fuel Taxes
Why the Trucking Industry Actually Supports Higher Fuel Taxes-May 2024
2024-04-01 EDT 03:40:58

"

Truck drivers in the United States use a lot of diesel fuel — 38 billion gallons (144 billion liters) a year, according to the American Trucking Associations (ATA) industry group. So you might think it's one group that clearly wouldn't want to see a federal fuel-tax hike, as it would increase its costs. After all, truckers already pay a hefty 24.4 cents per gallon in federal tax on diesel fuel, which is significantly higher than the 18.4 cents per gallon that car drivers pay on gasoline purchases federally, according to the U.S. Energy Information Administration.

That's why it probably will come as a surprise that ATA, the umbrella organization of state trucking groups and industry-related conferences and councils, has been pushing Congress and the White House for years to increase federal fuel taxes. As the New York Times recently reported, ATA officials have testified before Congress at least 19 times over the past 11 years in favor of raising federal fuel taxes.

"

The reason: Truckers have to depend upon roads, bridges, tunnels and other parts of the U.S. transportation infrastructure, which has fallen into an increasing state of disrepair. As a 2017 report by the American Society of Civil Engineers concluded, the U.S. has been underspending on infrastructure maintenance for years, so that we now have a staggering $420 billion backlog in needed highway repairs, and another $123 billion in overdue bridge fixes. That's not even counting the upgrades, new roads and modernization needed to accommodate increased future traffic needs, which could require another $193 billion in spending.

Fuel taxes are one way to raise some of the needed money, but those levies aren't indexed to inflation and were last raised in 1993, so they haven't kept up with rising infrastructure costs.

The fuel tax is the most efficient revenue source, and increasing it will produce no additional collection costs and minimal evasion, trucking executive Derek J. Leathers told a U.S. Senate subcommittee in April. Indexing can limit the negative revenue impacts of inflation and improved vehicle fuel efficiency.

Leathers said the industry prefers fuel taxes to another possible solution — conversion of existing lanes in the interstate system to toll roads. Setting up and manning toll booths would result in more overhead and less money spent on roads, and traffic would shift to alternative routes that aren't built to handle that much traffic, he testified.

Now That's Interesting In early 2017 the state of California enacted its own tax increase, raising the state excise tax on gasoline from 18 cents to 30 cents per gallon. The diesel excise tax will jump from 18 to 38 cents, and a 4 percent sales tax will also be added. Those, and vehicle tax increases, will raise $5.2 billion a year for state and local road and bridge repairs.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Automobile information
Are BMWs expensive to fix?
Are BMWs expensive to fix?
  Yes, BMWs are generally associated with higher maintenance and repair costs compared to non-luxury vehicles. Several factors contribute to the perception of BMWs being expensive to fix:   High-Quality Parts: BMWs use high-quality materials and components, and genuine BMW parts tend to be more expensive than generic alternatives. Advanced Technology: BMW vehicles are equipped with advanced technology and electronics. Repairing or...
May 11, 2025
Are BMW X4 good cars?
Are BMW X4 good cars?
  As of my last knowledge update in January 2022, the BMW X4 is generally well-regarded as a luxury compact crossover SUV. However, whether a BMW X4 is a good car for you depends on your specific preferences, needs, and priorities. Here are some factors to consider:   Pros:   Performance: The BMW X4 is known for its sporty and engaging driving dynamics....
May 11, 2025
Can BMW i3 run on gas only?
Can BMW i3 run on gas only?
  The BMW i3 is primarily an electric vehicle EV designed to operate on electric power stored in its high-voltage lithium-ion battery pack. However, some versions of the BMW i3 are available with an optional range extender, often referred to as the REx model. The range extender is a small internal combustion engine that serves as a generator to produce electricity,...
May 11, 2025
Are BMW 5 Series good cars?
Are BMW 5 Series good cars?
  The BMW 5 Series stands as a well-regarded car in the automotive world, earning praise from both industry experts and owners alike. It has carved a niche for itself by blending performance, luxury, and cutting-edge technology. Lets delve into the key factors behind the BMW 5 Series acclaim:   Performance: The BMW 5 Series offers a spectrum of engine choices, including...
May 11, 2025
Can a BMW i3 charge at a Tesla charging station?
Can a BMW i3 charge at a Tesla charging station?
  BMW i3 vehicles are not designed to charge directly at Tesla Supercharger stations. Tesla Superchargers use a proprietary charging technology that is specific to Tesla vehicles. Tesla vehicles use a unique charging connector and communication protocol that is not compatible with other electric vehicles, including the BMW i3.   The BMW i3 typically uses the Combined Charging System CCS or Type...
May 11, 2025
Are BMW X6 reliable?
Are BMW X6 reliable?
  the BMW X6 was a bit of a mixed bag, as is the case with any vehicle. It all boils down to factors like the model year, how well its been taken care of, and the driving conditions its been through. Since the BMW X6 falls into the luxury SUV category, you might find that its maintenance and repair costs...
May 11, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved