Several major trucking industry associations do not think much of President Donald Trump suggestion he wants to remove the 18.4 cent per gallon federal tax on gasoline.
Today, in response to Trump’s proposal, the American Trucking Associations, Truckload Carriers Association, and National Tank Truck Carriers released this statement:
“We understand and appreciate the desire to provide relief to Americans facing higher fuel costs. However, history shows that gas tax holidays deliver negligible benefit to consumers. Because the tax is collected at the wholesale level and not at the retail pump, most savings never reach the consumer. While the average motorist pays about $1.63 per week in federal fuel taxes, a suspension would translate into only about 30 cents in weekly savings.
“Without replacement funds, fuel tax revenues supporting critical investments in highway safety and infrastructure projects would evaporate, hindering the safe and efficient movement of people and goods across the country.
“America’s highways are truckers’ shop floor. While trucks are only four percent of vehicles on the road, the trucking industry covers nearly half of all Highway Trust Fund revenue. We look forward to working with members of Congress on solutions that deliver meaningful relief to consumers while preserving the long-term integrity of our transportation system.”
The part of the statement that mentions working with Congress is especially noteworthy as Trump does not have sole authority to suspend the tax. Congress must approve any such change.
Sen. Josh Hawley, a Republican from Missouri, said he will introduce legislation to suspend the tax. Florida Republican Anna Paulia Luna has said she will introduce similar legislation in the House.
Diesel and gasoline prices have spiked since Trump initiated Operation Epic Fury Feb. 28 in conjection with Isreal.
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