Currently, the government charges a tax on all different kinds of fuel. The current federal tax on diesel is 24.4 cents per gallon (state and local taxes bring that up to an average of 54.4 cents per gallon). This money is put towards the maintenance of our nation’s highways.
According to the Federal Highway Administration, there are two types of vehicles who do not pay their fair share under this system: hybrid vehicles and trucks. Both cause a disproportionate amount of wear and tear to the road relative to the amount they pay in fuel taxes. The solution being proposed? Stop taxing the fuel and start taxing the miles.
Two problems immediately surface. First, you’ve now reduced the incentive that the motoring public has to buy fuel efficient cars, which means manufacturers push less towards fuel efficiency which means we will be more highly dependent on foreign oil for longer. Second, and of more immediate concern for truckers, is that according to the Government Accountability Office, the proposed tax could cost commercial trucks between 3 and 8 cents per mile.
According to the GAO, Heavy Trucks currently pay an average of $3,363 per year into the Highway Trust Fund. Under the new plan, the average could go up to as much as $5,792. And again, that’s an average. Compare the 3 to 8 cent per mile that truckers would pay to the 1 and 2 cents per mile that cars would pay and you start to see how much of the burden truckers would be shouldering.
Unsurprising, OOIDA has stepped forward on behalf of truckers to speak against the proposal. OOIDA Executive Vice President Todd Spencer objected to the massively unbalanced distribution of financial burden.
“Good roads provide people with greater mobility,” he said. “They stimulate and promote tourism. Same for economic development. We all benefit from highways regardless of whether you drive or not, but right now only users are paying in.”
“This is a problem under the current gas tax, and simply shifting to [Vehicle Miles Traveled] is not going to make that problem go away,” said OOIDA Director of Legislative Affairs Ryan Bowley. “Indeed, under VMT there would be the potential to make the cost of driving a car or a truck amazingly prohibitive since depending upon how it was structured there could be the ability to automatically increase rates.”
Next Story: New Medical Card Test: Police Will Be Calling Your Doctor
Source: landline
Duane Linn says
I don’t mind paying a couple thousand bucks more… the one’s who will take it in the shorts thoughh will be the company driver… you know that the greedy trucking companies won’t shoulder the cost… maybe food will go up more, maybe everything else will go up more along with it. Maybe other countries will continue to purchase our free roads and set up more tolls and then we’ll take it in the shorts twice.
Susan says
I’m glad OIDA is fighting this. I don’t know how much more truckers can take. In our case fuel often takes over 50% of our gross. We already pay HVUT, taxes on fuel, taxes on tires & I’m sure there’s more that I’ve either forgotten or are buried in the fine print & creative descriptions that we don’t even realize we’re paying. That’s not even considering the excessive Excise Tax in our state or the other registrations. In our case with log truck, 90% of our distance is off road but if we touch the tar we have to pay through the nose because although we can file separately for a partial refund of tax paid on off highway miles, you don’t get it all back. And when our rates per ton haven’t gone up in over 25 years?
larry says
its worked ok since fdr started the interstate system but all of the sudden its not working. why not just increase the tax per gallon like they always do. otherwise the new tax will take a whole department of people to initiate it, manage it and allocate it. but after all those extra hirings there wont be anything left to allocate.
the estimate is that theer are 2 millon 18 wheelers operating in the us currently. but lets figure in for smaller vehicles like box trucks, rvs running on diesel and the number rises by probably another million with the tax amount being 14,532,000,000. that amounts to almost 280,000,000 dollars per state in federal tax dollars alotted for highway maintenance. his back to work program was only 50 nillion. im wondering where the money goes.
Tim says
Sounds to me like a lame attempt to deflect attention away from the real cause of the demise of America’s highway infrastructure.
BJ says
The government needs to stop raiding the highway fund to pay for other things. I don’t think they would like it very much if taxpayers stopped paying taxes so we could pay our other bills. The problem isn’t revenue is down, it is that corruption is up. Light rail systems and walking paths ate not highways.
hittman306 says
BJ i like your answer and your right if the people we elected keep stealing from the pot there want be one left to PP in LOL but you get the point
Curt Morehouse says
Fuel is ALREADY taxed by the mile. Anyone who’s ever filled out a fuel tax (IFTA) form knows this. Your total miles are divided by your total gallons, giving you an average MPG. Then you take the miles you drove in each state, divide them by your average MPG, and this gives you the number of gallons you SHOULD have bought for the amount of miles you DID drive. You then take the difference between what you did buy and what you should have bought, and multiply that by the tax rate for that state, and this is the fuel tax owed or owed to you. Total all of these for each state, and that’s the check you write to IFTA in your home state. The “reward” for increasing your MPG is built in because of the math, but in the end, you are already paying “per mile.”
Rob says
Geez, up here in canada we pay about 4 times as much fuel tax.
Bryan says
Eisenhower
Theresa says
The government is always thinking and usually following through taxing more and more the working man.
The average person does not realize the annual cost to just get a rig on the road: IFTA, Heavy Hwy Usage; tag for trailer and tractor, insurance cargo and liability this equals little under $10,000/yr. This is just to be able to run. This does not count the maintenance and fuel.
US citizens do not realize that 95% of all products in the stores have been on a big rig. And if the trucking industry shuts down the American people are going to be without all commodities.
Our government need to look at their spending practices instead of increasing taxes.
Jeff says
I,m for the goverment watching its spending habbits. i,ve seen so much wasted money by road crews>>> its crasy!!!!!! but no, just increase the trucking industry. why not increase all the 4 wheelers as well. like increase cost of license renewal for them or something and take thaat amount and put it into roads. but always pick on trucks!!!! its getting to point that companies cant afford this stuff anymore not alone an owner opp.
Jeff says
goverment is sure trying hard to run trucking industry BROKE !!! all of this just reflex on all of our costs in the store as well, but seems some dummy cant figure that out.
Dan says
If the Government (State OR Federal) would just use the fuel tax FOR ROAD REPAIR, there would not be a problem. It’s when they dip into highway funds and use it for other crap that they come up short for road repair.
Ward says
your right we are already shouldering most of the other increases like fuel cost.
here in ND most companies are now 1099 pay roles. that means no/ zero protection from anything and all the liability. simply twist your ancle and your gone. No unemployment, no workers comp, no benifets, nothing. and these tax taking bloodsuckers who keep asking for more who we have already paid to inforce the rules do nothing to protect us. Like enforce the rule that all “employees. are protected by the taking if UI and workers comp. The fact is these 1099 employers are paying in, and arent paying us either.
Now the state nand fed wants me to pay them more just to get to work?
Susie says
WHAT ? it might put me out of business everything is going up BUT my load pay!! If they would use the money for what it needs to be used for instead of giving raises to everyone.
Rick Woodcox says
Maybe just maybe OOIDA can atleast try to fight this. However the more we pay doesn’t fix the problem. When you drive through most road construction projects. The companies that are working on the highway are usually from some other state. The cost of doing the repair or even the total rebuild might be a little more feasable had a construction contractor was from somewhere a lot closer than costing less to do the work. Then just maybe the government would not be recieving such high bills to make the repair and thus they would not have to figure why the need to raise even more taxes on not only trucks but everyone who does what it is they do for a living. Costing more won’t fix the problem but fixing the problem of the cost might.
Karen says
Thank you Curt. Thought I was in the twilight zone for a minute. My monthly settlements have shown a highway fuel tax per mile since I became an o/o. This article sounds a little fishy, any good o/o who’s paid attention to their bottom line knows about the highway use tax, and that each state has a different fuel tax, then there are the states who have no tax at the pump, like oregon, but they get you hard for use tax. Check the front of your map books, some of then now list each states fuel/use tax.
carl says
the posts on this article are quite amusing and show that many have no idea how the highway fund and fuel taxes work. truckers that don’t understand these basic concepts will, naturally, have problems with any new or increased taxes. firstly, IFTA isn’t federal tax. it is a way to share state taxes, and yes, it is based on milage, but the federal tax isn’t. secondly, they can’t raise the fuel tax per gallon (a better way than they are proposing) because too many in the House of Representatives think voting no on any and all tax increases is “fiscally responsible” when, in fact, it is irresponsible and obstructionist. thirdly costs of road construction and maintenance has gone through the roof due to inflation and other factors (including increased costs of energy) fears that the highway fund is being “raided” are simply paranoia. mass transit and bike paths are transportation, thus eligible for transportation dollars.
i would strongly urge truckers, especially O/O’s and anyone considering becoming one, to educate yourself in the career path you have chosen. and jason, he was lawfully elected, get over it.
Jim Stout says
1. Remember the good old days when you could disconnect the odometer?
2. Any tax should also apply to four-wheelers because everything the four-wheeler drivers wear, touch, or eat was delivered by trucks … even the four-wheeler itself.
martee99 says
Instead of complaining about evil greedy trucking companies, why aren’t you complaining about evil greedy politicians. I’ll bet these clowns will keep the fuel tax in place AND impose the mileage tax on top of it. You get what you vote for.
RANDALL says
well i already pay a heavy road use tax of 550.00 per year where does this money go to .i think truck drivers pay enough . ir seems like all the goverment does is sit up their in the white house to figure out how to rip people who really works and pays taxes not like some of the lazt fat goverment workers who cant do a real job like our .we are the people who keep the world running .i dont no how much more truck drivers will take before they wake up and shut the trucks down. and the goverment cant do nothing about that except worrie about when we will start them back up. WAKE UP TRUCK DRIVERS BEFORE IT TOO LATE
paul says
Larry you are right about that. the current system is probably the most efficient.
This would just grow another government department. And leave us less money for the roads
Hey wait thats it! I better get my resume ready. I think I’d like working for the feds, after all
there is no belt tighting there they are getting raises while we just try to stay afloat.
And the pension is pretty good too.
mike says
it was Eisenhower who. Did our interstate system but they are tring to use fairness as an excuse to do something wrong.
Tom says
Randall.
the reason nobody shuts a truck down is the same reason you dont shut down.
YOU HAVE TO EAT!!!!…also back in the 70’s that was tryed and the pres told trucker to go back to work and drive or go to jail…guess what happen….
LONG TIME GONE says
Nationwide shutdown should get the politicians attention, if it is proposed , planned & executed properly… lets see now, if no trucks are running and no body is buying fuel … how big a hit in the tax dollar pocket book or wallet is that going to cause … Hmmmm…. ?