A proposal to eliminate the 12% federal excise tax on new trucks and trailers and to raise the federal diesel tax 6.3 cents to make up for the lost revenue to the Highway Trust Fund was introduced in the U.S. House of Representatives.
Rep. Jim Gerlach (R-Pa.) and cosponsor Rep. Earl Blumenauer (D-Ore.) introduced the measure March 29. The bill would raise the diesel tax to 30.7 cents a gallon, and is supported by American Trucking Associations, some large carriers and several truck leasing companies.
Transportation-related legislation has been a key sticking point with this Congress. While the Senate has approved a long-term transportation funding measure, the House is still wrangling with its own version of the bill.