[Congressional Record (Bound Edition), Volume 158 (2012), Part 4]
[Extensions of Remarks]
[Page 4684]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      HEAVY TRUCK TAX FAIRNESS ACT

                                 ______
                                 

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Thursday, March 29, 2012

  Mr. BLUMENAUER. Mr. Speaker, nothing is more essential to restoring 
the economy, revitalizing our communities, and protecting our 
environment than the effort to rebuild and renew America. The U.S. 
faces steep infrastructure challenges. Our infrastructure inventory is 
in poor repair and much of it is outdated--not just decades, but often 
centuries old. Our effort to rebuild and renew that infrastructure is 
stalled because of a funding impasse. The Highway Trust Fund nearly 
exhausted its funding several times recently and it is clear that our 
existing funding mechanisms are insufficient to meet our current, much 
less future, needs. Congress must consider new revenue sources to meet 
our infra- structure challenges and must work with transportation users 
to find the most efficient means of raising this revenue.
  I rise today to reintroduce the Heavy Truck Tax Fairness Act, 
bipartisan legislation to ease barriers to investment in new, heavy 
trucks. The funding sources for the Highway Trust Fund can be volatile, 
depending on the health of the economy. Current law places a 12% tax on 
the sale of new heavy trucks, trailers, and certain tractors. This tax 
is an important source of Highway Trust Fund revenues. In times of 
economic stress, these sales fall dramatically, badly limiting Trust 
Fund resources. These lost sales have several important effects. By 
reducing revenue to the Trust Fund, the decline hinders economic 
productivity by imposing costs from poor infrastructure. It also 
reflects an increase in the average age of the trucking fleet. New 
trucks have significant environmental and safety advantages, and 
Congress should reduce the barriers to new truck acquisition. To meet 
the demand for new trucks, most truck manufacturers will add employees, 
as most have significant engine and final assembly operations in the 
U.S.
  The Heavy Truck Tax Fairness Act would replace the 12% excise tax 
currently levied on new truck, trailer, and certain tractor sales with 
an off-setting increase in the diesel fuel excise tax of $0.064 per 
gallon. This modest change will ensure that the aggregate tax burden 
stays roughly equivalent over 10 years; it will also have the effect of 
smoothing the resources available to the Highway Trust Fund and ensure 
the U.S. can continue investing in our vital transportation 
infrastructure. I also note that this legislation does not affect all 
transportation stakeholders equally. In particular, smaller companies 
and owner-operators could see fewer benefits. I pledge to work with 
affected groups as this legislation advances to ensure that the 
legislation, as enacted, is as carefully tailored and broadly 
beneficial as possible.

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