As part of Gov. Jeff Landry’s goal to rid our state of job-killing and antiquated taxes, the state legislature heads into another special session this year to reform our state’s tax code. Our nation is, at the same time, electing a new president and administration to enact similar reforms. 

While our state has its share of taxes that place a drag on the economy, the federal government has their fair share too. Our state needs an overhaul of our burdensome tax system that hurts small businesses, and so does the federal government. 

For over a century, a truck tax has been hurting the industry. First imposed in 1917, the federal excise tax on heavy-duty trucks and trailers helped America win World War I. Rather than expiring after outliving its original purpose, however, this tax has grown into a $5 billion annual burden shouldered by hardworking truckers.

The 12 percent tax on new heavy-duty trucks and trailers is the highest excise tax on any product, adding $25,000 to the cost of a new clean-diesel truck and $50,000 to a zero-emission truck. This excessive tax disproportionately impacts independent truckers, mom-and-pop operations, and other small fleets who have less access to capital. These small businesses make up the majority of the industry, especially in Louisiana, where our average trucker owns eight trucks. 

All Louisianans have an interest in seeing this levy scrapped, since consumers are forced to bear the cost through higher prices when they shop. Louisianans also pay in unseen ways. 

This federal excise tax forces most trucking companies to hold onto their existing equipment for as long as possible. It’s a key reason half of the trucks on our roads today are older than 15 years. Not only does this result in fewer truck manufacturing jobs, but it also delays the deployment of new trucks, which have significant advantages over the older models they would replace.

Modern trucks come with capabilities designed to reduce or prevent crashes. Standard features include stability control, lane departure warning, blind spot monitoring, and rearview cameras. 

According to the Insurance Institute for Highway Safety, solutions like automatic emergency braking and front collision warning could eliminate more than two out of every five crashes where a large truck rear-ends another vehicle. Making these technologies more widespread would protect property and save lives.

In our current polarized environment, it is rare to find unifying public policies. Repealing the federal excise tax on heavy-duty trucks and trailers has bipartisan support, and it would be a major win for highway safety, good-paying manufacturing jobs and the environment. 

I strongly encourage our elected leaders to join their colleagues in co-sponsoring the Modern, Clean, and Safe Trucks Act. With the support of Speaker Mike Johnson, Majority Leader Steve Scalise, Sens. Bill Cassidy and John Kennedy, and the rest of Louisiana’s congressional delegation, we can vanquish this onerous tax once and for all and fully unleash our country’s economic potential.

Renee Amar is the executive director of the Louisiana Motor Transport Association. 

This column was edited for length and style. 

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