Shutdown puts brakes on excise tax resolution
Tuesday’s governmental shutdown put the brakes – at least temporarily – on legislation currently in the U.S. House of Representatives designed to halt a 12 percent Federal Excise Tax (FET) applicable toward the purchase of trucks and trailers.
After wrangling mostly over the funding of “Obamacare”, Congress missed its midnight Tuesday deadline to keep the government running, and now must piecemeal together a compromise off-the-clock.
The resolution is one of 718 assigned to the Ways and Means Committee – a committee whose members’ full attention is needed in the House and Senate – and is expected to take a backseat as Congress works toward a compromise and governmental “grand-reopening.”
The tax spike had been seen as a potential cash boost for the Highway Trust Fund, but the resolution points out that truck prices have spiked in recent years. An additional tax would put an increased burden on the marketplace and drive up the cost of a truck upwards of $30,000, potentially doing more harm than good by adding “uncertainty and volatility to the Highway Trust Fund.”
The Truck Renting and Leasing Association (TRALA) has thrown their support behind the bill introduced by Representatives Reid Ribble, (R-WI) and Tim Walz, (D-MN).