Bill Overview
Title: Strengthening Supply Chains Through Truck Driver Incentives Act of 2022
Description: This bill allows certain licensed commercial truck drivers a $7,500 tax credit in a taxable year. The adjusted gross income of such drivers may not exceed $90,000 ($135,000 in the case of a joint tax return and $112,500 for heads of household). Such drivers must have driven a truck in a trade or business for a specified number of hours in a taxable year. The credit expires after December 31, 2023.
Sponsors: Rep. Spanberger, Abigail Davis [D-VA-7]
Target Audience
Population: People employed as commercial truck drivers or their joint tax-filing partners
Estimated Size: 2100000
- The bill targets commercial truck drivers eligible for a tax credit based on their income level.
- There are approximately 3.5 million truck drivers in the United States as per industry reports.
- Considering the income level cap, not all truck drivers would qualify for this tax credit, but a significant portion who fall under $90,000 individually or applicable joint incomes might benefit.
- The bill specifically targets those active in the profession ('driven a truck in a trade or business for a specified number of hours'), eliminating any drivers who are not actively working enough hours.
- Other studies suggest that nearly 60% of truck drivers make below $60,000 annually, meaning a substantial number will be under the $90,000 cap even when accounting for otential raises since those figures were reported.
Reasoning
- Considering the policy budget of $15,750,000,000 for the first year and over ten years, only a subset of the estimated 3.5 million truck drivers can take advantage of the $7,500 tax credit due to the income caps and minimum hours worked requirements.
- Since the policy is temporary with expiration after December 31, 2023, its impact might be seen immediately (in Year 1 and Year 2), but effects might wane gradually in the absence of longer-term provision (after the policy ends).
- The issue of wellbeing, as defined by the Cantril scale, will be influenced by immediate financial relief but may not show lasting improvements without ongoing supports.
- Truck drivers who earn over the $90,000 individual threshold or $135,000 with joint tax returns won't benefit, illustrating how this policy targets middle to lower income brackets within the truck driving sector.
Simulated Interviews
Truck Driver (Atlanta, GA)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- This tax credit would come in handy for me especially during tax season when I feel the pinch.
- I'm concerned it's just a temporary relief and not a permanent solution.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Truck Driver (Dallas, TX)
Age: 38 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- Every bit counts, and $7,500 could help with childcare expenses.
- Being self-employed, cash flow is variable, and this tax credit is a welcome relief.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Truck Driver (Columbus, OH)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 10/20
Statement of Opinion:
- I don't think this affects my retirement plans much, but it's good to see drivers being considered.
- I wish there was something permanent for newer drivers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Truck Driver (Los Angeles, CA)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I'm grateful they included truck drivers, but I'm hoping for policies that promote inclusivity in the industry.
- It's a financial benefit, but there are still structural issues.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Administrative Assistant (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- This tax credit directly supports our family's financial health.
- It's temporary, so we'll have to plan accordingly once it ends.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Truck Driver (Miami, FL)
Age: 32 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- The tax credit will help slightly chip away at my student loans.
- I wish there was more long-term support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Truck Driver (Denver, CO)
Age: 41 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- This is a good move, but there need to be more structured incentives for new truckers like me.
- I need more consistency, not just a one-time benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 4 |
| Year 20 | 4 | 4 |
Truck Driver (Portland, OR)
Age: 37 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 6/20
Statement of Opinion:
- Any financial support is welcome, but I'd like to see this tied to sustainability efforts in the trucking industry.
- Short-term savings, long-term challenges persist.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Logistics Coordinator (New York, NY)
Age: 48 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 13/20
Statement of Opinion:
- From my perspective, this credit is vital for driver retention.
- It might encourage some retired drivers to consider returning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Truck Driver (Seattle, WA)
Age: 61 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- The credit doesn't affect my part-time work as I earn over the threshold with my pension.
- It's good, but maybe a broader approach to support older workers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $15750000000 (Low: $12000000000, High: $18000000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy has a clear end date, minimizing long-term fiscal impact.
- The higher percentage of eligible truck drivers increases the cost, highlighting the need for precisely forecasting the number of beneficiaries.
- Consideration should be given to the actual effects on supply chain efficiency and workforce stability.