Not only does the trucking industry ensure a flow of necessary goods and essential medical supplies, it also supports 7.8 million American jobs.
Economic recovery depends in large part on maintaining the flow of goods provided by the trucking industry. To help ensure this work gets done, Congress must act to boost production at domestic truck factories and bring customers back to stores. The most efficient way for Congress to aid this part of the economic recovery — and the trucking industry — would be to suspend the 12% federal excise tax on heavy-duty trucks and trailers.
Due to the pandemic, heavy-duty truck sales in the U.S. fell 62.5% in May 2020 compared to the same time last year – the lowest point since 2011. Suspension of the FET, which routinely adds $12,000 to $22,000 to the price of a new truck, would immediately spur the sales of newer, cleaner heavy-duty trucks and more importantly retain and support truck dealership and industry jobs.
As Congress considers the next phases of virus-related economic recovery legislation, it should include suspension of the FET on new trucks and trailers until the end of 2021.