Bill Overview
Title: Modern, Clean, and Safe Trucks Act of 2022
Description: 2 This bill repeals the 12% excise tax on the retail sale of heavy trucks and trailers.
Sponsors: Rep. LaMalfa, Doug [R-CA-1]
Target Audience
Population: People affected by the repeal of the 12% excise tax on heavy trucks and trailers globally
Estimated Size: 80000000
- The excise tax on heavy trucks and trailers directly affects the trucking and logistics industries.
- Truck owners would see a reduced burden due to the repeal of the 12% excise tax on heavy trucks and trailers, likely leading to cost savings when purchasing new vehicles.
- The legislation could encourage the purchase of newer and potentially cleaner trucks, impacting manufacturers of these vehicles.
- The bill could indirectly affect industries reliant on logistics and trucking services by potentially reducing transportation costs.
- Affect can be seen on consumers as transportation cost reductions may trickle down into the pricing of goods.
- Workers within the manufacturing sector of heavy trucks and trailer parts might experience increased demand for production.
Reasoning
- The policy directly impacts those in the trucking and logistics industry by eliminating a significant cost associated with purchasing new trucks. This would likely result in cost savings for truck owners and operators, potentially leading to increased profitability or competitive prices for goods transported.
- Truck manufacturers might see an uptick in sales as the purchase of new trucks becomes more financially attractive, stimulating economic activity in this sector.
- The trucking industry is core to the logistics and transportation of goods in the U.S., so a broad range of industries that rely on these services could see a decrease in logistics costs, potentially lowering consumer prices.
- The budget of $3.5 billion USD in year 1 and $41.3 billion USD over 10 years suggests the policy can substantially contribute to sectors directly or indirectly related to truck sales and logistics, yet the individual gains will vary based on the closeness of the individual's line of work to these sectors.
Simulated Interviews
Truck Driver (Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- The repeal of this tax will save me a lot when buying new trucks.
- I could upgrade my fleet sooner.
- Expect better profits or pass savings to my customers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Logistics Coordinator (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This could mean more business due to potentially lower transport costs.
- Might lead to more job security and even salary increases in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Truck Manufacturer (Michigan)
Age: 61 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- The policy should boost sales, as it lowers the end cost for our buyers.
- It might drive innovation in cleaner technologies too.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Consumer Goods Retailer (New York)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 15/20
Statement of Opinion:
- If transport costs drop, I could reduce prices or improve margins.
- Not directly affected but hopeful about trickle-down cost reductions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Environmental Activist (Illinois)
Age: 37 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- While this could lead to newer, cleaner trucks, it needs incentives for sustainable technology.
- Skeptical this will truly impact emissions significantly without further measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Independent Trucker (Georgia)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- It's a financial relief, as owning a truck is expensive.
- Hope it allows me to upgrade sooner than planned.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Truck Part Manufacturer (Ohio)
Age: 48 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Increased truck sales mean more parts ordered from us.
- Secures jobs and might result in hiring more staff.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
University Student (Washington)
Age: 25 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Changes in the logistics field could mean better job prospects post-graduation.
- Interesting to see the policy's real world implications on my field.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Farmer (Florida)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 13/20
Statement of Opinion:
- Lower transport costs could reduce my expenses, but this is indirect.
- I support anything that makes logistics cheaper and efficient.
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 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Retired (Missouri)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I think current drivers will benefit from this, making their jobs easier and costs lower.
- Indirectly supportive as it helps my old friends in the field.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $3500000000 (Low: $3000000000, High: $4000000000)
Year 2: $3650000000 (Low: $3150000000, High: $4150000000)
Year 3: $3800000000 (Low: $3300000000, High: $4300000000)
Year 5: $4100000000 (Low: $3500000000, High: $4700000000)
Year 10: $4700000000 (Low: $4000000000, High: $5400000000)
Year 100: $8000000000 (Low: $6500000000, High: $9500000000)
Key Considerations
- The repeal shifts significant tax burden from owners of heavy trucks and trailers, leading to broad industry savings.
- Infrastructure funding might need adjustments as these funds may contribute to highway funds.
- Additional economic impacts due to potentially increased truck sales necessitate analysis in other sectors like emissions if cleaner trucks are prioritized.