As the latest talks on Capitol Hill fell apart earlier this week, America’s infrastructure faces more delays to redevelopment. The partisan nature of the current US political landscape is slowing the process down further, with disagreements over how much and where money should be spent, preventing action from being taken. In the meantime, the trucking industry wants to ensure that the efficient transport of freight due to the lack of congestion throughout the pandemic sets the tone for the future of the industry. So, with infrastructure talks ongoing, how will the trucking industry be impacted by the potential outcomes of these discussions?
The transportation sector agrees that investment in infrastructures such as new roads, highways, and bridges is required for the industry. With a more efficient freight system comes bigger economic profits. The pandemic gave the trucking industry a brief respite from the obstacles of an outdated road network. With that coming to an end, professional truck drivers will face new and continued challenges without significant improvements to the transportation infrastructure.
It is truckers all over the country that are likely to be impacted the most by the result of current and ongoing debates around infrastructure investment. There are talks of a plan to replace the Highway Trust Fund, funded by the Federal Fuel Tax which has failed to keep up with inflation rates, with a Vehicle Miles Travelled Tax. This new tax would affect a small portion of the population who travel more. However, the change could potentially bring in 300 times the amount raised via the Federal Fuel Tax, raising an estimated $20 billion annually, to keep America’s road networks functional.
With the talks ongoing, the exact impact on the trucking industry is still unclear. Are you in support of the proposed Vehicle Miles Travelled Tax, or would an increase in the federal fuel tax be more appealing? Share your thoughts by leaving a comment below.