Automakers’ trade group urges feds to ditch gas tax, replace it with weight fee
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The leader of the trade group representing most of the major car manufacturers has called on the federal government to end it fuel tax and replace it with a car fee to fund road infrastructure needs.
The head of the Alliance for Automotive Innovation, John Bozzella, whose group represents car manufacturing companies such as General Motors, Toyota, Volkswagen, Hyundai and other leading car manufacturing companies, has put forward a proposal urging the federal government to deal with the growing deficit of the Highway Trust Fund with car money.
The proposal will serve as a vehicle registration fee that is assessed on all vehicles based on their weight, and was first reported by Reuters. It comes as the government’s current transport law is due to expire on September 30, which could spark debate over policy changes.
“This policy will ensure that every vehicle on the road contributes to maintaining America’s transportation network,” Bozzella said. “Those who drive old, fuel-efficient cars or travel long distances are burdened. That is not right.”
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An auto industry trade group wants a new vehicle registration tax to replace the gas tax. (Al Drago/Bloomberg via Getty Images)
I Highway Trust Fundwhich funds the federal government’s transportation programs that include highways and mass transit, is expected to break even in 2028, at which point it will face a 46% cut, according to the nonpartisan Committee for a Responsible Federal Budget.
Revenue from the 18.4-cents-per-gallon gasoline tax fell 60% in real terms, as the state gas tax has not been raised since 1993 and has not increased. adjusted for inflation.
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The state gas tax has not been raised since 1993 and has eroded due to inflation. (M. Scott Brauer/Bloomberg via Getty Images/Getty Images)
The deficit has caused Congress and successive administrations to remove more than $275 billion from the federal government ordinary bag to help pay for road repairs since 2008, as spending has been outstripping revenue.
Gas tax revenue also decreased during the evolution of electric vehicles (EVs) and more fuel-efficient hybrids that reduce the frequency of fill-ups by drivers.
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The Highway Trust Fund helps finance federal spending on public transportation projects. (Stephen Goin/Fox News)
A proposal by House Republicans last year would have set a new annual fee of $250 for EVs and $100 for hybrid EVs, although they were not included in EVs. One Big Good Bill.
Last year, the EV advocacy group known as the Electrification Coalition argued that the proposed $250 fee on EVs was unfair because the average gas-powered vehicle pays only $88 a year in federal gas taxes.
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Reuters contributed to this report.
