By James Gent
An alliance representing nearly all major automakers has called for the United States Federal Gas Tax to be scrapped. While that may sound like good news at first, the alliance has instead suggested the introduction of a brand-new tax based on vehicular weight. This may come as a bit of a shock to pickup truck and/or SUV owners, especially those with beefy PHEV powertrains.
Why A New Tax Based On Vehicle Weight Would Be “Fair”
In a recent report by Reuters, John Bozzella, the head of the Alliance for Automotive Innovation that comprises General Motors, Toyota, Volkswagen and Hyundai, explained that a proposal has been put forth to replace the US government’s Federal Gas Tax with a single fee for every road-registered vehicle based on its curb weight. The gas tax is a fixed rate of 18.4 cents per gallon for regular unleaded gas, and 24.4 cents per gallon for diesel, established by Congress in 1993. The funds from the tax goes towards US road and highway maintenance, as well as other federal transport programs.
That 18.4 cent/gallon rate, however, has gone unchanged since it was established over 33 years ago, rather than increasing with inflation.As a result, the total tax payment is considerably less than it was in 1993, with Reuters' report estimating that the tax has lost more than 60% of its value "in real terms."Indeed, up to $275 billion is believed to have been diverted from the general fund to help with this shortfall since 2008.
The Alliance’s proposed new tax, meanwhile, would charge each vehicle based on its weight. Not only would this redress the balance, it also ensures each registered passenger vehicle contributes to road and highway upkeep, and keeps things fair:
“This policy would guarantee every vehicle on the road contributes something to maintaining America’s transportation network… Those driving older, less fuel-efficient vehicles or who travel long distances bear the financial burden. That’s not fair.”
- John Bozzella, head of the Alliance for Automotive Innovation, via Reuters
In this scenario, drivers of a 2026Toyota Corolla sedan weighing around 3,000 pounds would therefore pay less than owners of a 2.5-ton Tundra pickup, the theory being that the latter causes more damage to the road than the former. The proposal suggests that this new tax, if approved, could be implemented as an annual registration fee.
How Gas Tax Successor Would Affect EV Owners Too
Notably, replacing the Federal Gas Tax with the Alliance’s proposal would see a greater contribution from all-electric vehicles and/or hybridized models, which currently contribute either very little, or nothing at all. The comparatively welterweight Longbow, for example, still weighs nearly 2,000 pounds, while the luxurious likes of Rivian's new R2 SUVc ould be three times that. Even Chevrolet's entry-level Blazer EV tips the scales at 5,000-plus pounds.
Source: Reuters
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This article originally appeared on CarBuzz and is republished here with permission.
