[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. Con. Res. 40 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
S. CON. RES. 40

 Expressing the sense of Congress that the Federal excise tax on heavy-
                  duty trucks should not be increased.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2016

 Mr. Gardner submitted the following concurrent resolution; which was 
                  referred to the Committee on Finance

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
 Expressing the sense of Congress that the Federal excise tax on heavy-
                  duty trucks should not be increased.

Whereas there is a 12-percent Federal excise tax on new tractor trailer trucks 
        and certain other heavy-duty trucks;
Whereas the 12-percent Federal excise tax is the highest percentage rate of any 
        Federal ad valorem excise tax;
Whereas the Federal excise tax was first levied by Congress in 1917 to help 
        finance the involvement of the United States in World War I;
Whereas, in 2015, the average manufacturer suggested retail price for a heavy-
        duty truck was more than $178,000;
Whereas the 12-percent Federal excise tax adds, on average, an additional 
        $21,360 to the cost of a heavy-duty truck;
Whereas the average in-use, heavy-duty truck is 9.3 years old, close to the 
        historical all-time high;
Whereas the Federal excise tax, by significantly increasing the cost of new 
        heavy-duty trucks, keeps older, less environmentally clean, and less 
        fuel efficient heavy-duty trucks in service for longer periods of time;
Whereas the model year 2002-2010 tailpipe emissions rules of the Environmental 
        Protection Agency (in this preamble referred to as the ``EPA'') account 
        for $20,000 of the average price of a new heavy-duty truck;
Whereas, according to the 2011 EPA and National Highway Traffic Safety 
        Administration Regulatory Impact Analysis entitled ``Final Rulemaking to 
        Establish Greenhouse Gas Emissions Standards and Fuel Efficiency 
        Standards for Medium- and Heavy-Duty Engines and Vehicles'', model year 
        2014-2018 EPA-Department of Transportation fuel economy rules will add 
        approximately $8,000 to the price of a new heavy-duty truck;
Whereas the $28,000 average per truck cost of these regulatory mandates results, 
        on average, in an additional $3,360 in Federal excise taxes;
Whereas achieving the goal of deploying cleaner, more fuel efficient heavy-duty 
        trucks, given the $30,000 average per truck regulatory cost, would be 
        slowed even further if the Federal excise tax were increased;
Whereas achieving the goal of deploying heavy-duty trucks with the latest safety 
        technologies, such as lane departure warning systems, electronic 
        stability control, and automatic braking for reduced stopping distance, 
        would be slowed if the Federal excise tax were increased;
Whereas all of the heavy-duty trucks sold in the United States are manufactured 
        in North America; and
Whereas more than 8,000,000 people in the United States are employed in the 
        United States trucking industry: Now, therefore, be it
    Resolved by the Senate (the House of Representatives concurring), 
That--
            (1) the Federal excise tax under section 4051 of the 
        Internal Revenue Code of 1986 on new tractor trailer trucks and 
        certain other heavy-duty trucks inhibits the sale of the 
        cleanest, safest, and most fuel efficient heavy-duty trucks and 
        trailers;
            (2) the Federal excise tax on new tractor trailer trucks 
        and certain other heavy-duty trucks adds uncertainty and 
        volatility to the Highway Trust Fund due to the cyclical nature 
        of heavy-duty truck and trailer sales;
            (3) the Federal excise tax on new truck tractors, heavy-
        duty trucks, and certain truck trailers should not be 
        increased; and
            (4) Congress should carefully review the detrimental 
        impacts of the Federal excise tax when considering future 
        transportation policy.
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