[Congressional Record (Bound Edition), Volume 162 (2016), Part 5]
[Senate]
[Page 6962]
[From the U.S. 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 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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