[Congressional Record Volume 162, Number 82 (Tuesday, May 24, 2016)]
[Senate]
[Pages S3103-S3104]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




SENATE CONCURRENT RESOLUTION 40--EXPRESSING THE SENSE OF CONGRESS THAT 
  THE FEDERAL EXCISE TAX ON HEAVY-DUTY TRUCKS SHOULD NOT BE INCREASED

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

                            S. Con. Res. 40

       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

[[Page S3104]]

     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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