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Trucking Fuel Tax Increase

American Trucking Associations Support Fuel Tax Increase to rebuild America's infrastructure. How will this affect independent US truckers?


The American Trucking Associations (ATA) eagerly support a fuel tax increaseto fund infrastructure and raise revenue for the federal government. The ATAs argue that Americans need to invest in rebuilding the crumbling and out of date American infrastructure. This funding will make some necessary improvements to ensure our economy thrives for the long-term. Just look around America's roadways and virtually anyone would agree that work desperately needs be done.


Directly benefited by an improved transportation infrastructure, a trucker's job can be safer and more pleasurable with smooth roads upon which to transport goods. With The American Trucking Associations supporting the tax increase, commercially transportinggoods across the nation is bound to generally be good for trucking.


Here's The Math American Trucking Associations Support

How much of an increased fuel tax is proposed for the American infrastructure rebuild? Currently, the figure is approximately $.25/gallon.Continuing to do the math with this figure, the tax would equate to be $.03 to $.05 per total mile for truckers.


he fuel tax impact for the majority of paying ATA members will be minimal. But how will smaller, independent operators be impacted? It might put them out of business and/or drive them to work for the big guys.


Let's look at the history of taxes. Sometimes we are told they will only be "temporary" until the additional tax is no longer needed. But does that ever really happen? Hasn't history repeated itself enough regarding what government really does with taxes to see that once a tax is accepted and implemented, it quietly gets increased and never goes away?


Larger enterprise carriers, LTL, and parcel providers use fuel surcharges and operate more efficient trucks and freight networks to recoup a large fuel cost percentage compared with the smaller operators. Shippers contracted by agreements to pay the fuel surcharges also will end up paying a greater increased fuel tax percentage compared to enterprise truckers. But the way independent truckers work, they will most likely have to absorb the entire increase without passing on that increase to anyone. It's simply one of the differences in how the "big guys" compared with the "little guys" handle transport/contracting costs.


With change comes adaptation. How will the trucking industry really be affected by this increase? That fact remains to be seen.

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