Federal Weight-Distance Tax Proposed
![]() | Related Stories |
![]() | ![]() ![]() ![]() ![]() ![]() ![]() ![]() | ![]() | ![]() |
Chafee wants to eliminate the 12% excise tax on new truck equipment, the tire tax and the heavy vehicle use tax, saying they "poor surrogates" for highway use and "raise relatively small amounts of money." The lawmaker also wants to reduce the 24.3-cent a gallon federal tax on diesel fuel to 18.3 cents, the same as on gasoline.
He said a weight-distance tax would raise $11 billion annually, the same amount as the Department of Transportation estimates trucks pay under the current structure.
Chafee said more than 5.9 million light and medium truck operators would see a tax reduction, while owners of 1.5 million other trucks – those weighing more than 70,000 pounds and operating mostly in interstate commerce -- would see an increase in their taxes to offset the wear and tear they impose on highways and bridges.
Trucking fended off criticism from Chafee in 1997 that truck owners do not pay their fair share of taxes by pointing out that the typical interstate tractor-semi trailer combination pays more than $20,000 in federal, state and local taxes as well as more than $14,000 in regulatory costs.
Ìý