CTRailfan wrote: ↑Mon Dec 09, 2019 11:40 am
It's much larger than simply passenger rail. Trucking companies see massive subsidies of the highways that they drive on, while freight railroads see relatively little subsidy. I think more needs to be done on the truck tolling side of things to make them pay a larger portion of their own way, but also on the freight rail side to subsidize freight rail electrification and capacity improvements in terms of building iron interstates with limited grade crossings and more tracks to handle not only current freight, but increased carload freight, transload freight, as well as open intermodal.
Trucking firms pay the same fuel taxes as freight railroads. Diesel is taxed at a higher rate than gasoline in most of the USA.
Trucking firms pay property taxes on warehouses, operations and maintenance facilities, etc. They do not have to pay property taxes of right-of-ways open for public use, that railroads do. But trucking firms pay the same licensing fees for both tractors and trailers that railroads do not. Trucking firms also pay high excise taxes on rubber tires that railroads do not.
The government does not tax either railroads or trucking firms a toll to use most highways, but trucks pay a higher toll where there are tolls than passenger vehicles.
Let's get specific on rubber tires. When you buy tires for your passenger vehicle, the excise tax is around $0.00 per tire.
https://www.petestirestore.com/What-is- ... _b_56.html
FET is an acronym for federal excise tax. It refers to the tax imposed by the federal government on tires used on the road with a maximum load capacity greater then 3500 pounds. Generally this applies to medium truck tires and heavy duty trailer tires. The FET is calculated based on how much weight the tire can carry. For every 10lbs of carrying capacity over 3500 pounds a tax of $0.945 is charged. ($0.4725 for bias ply tires and super single tires).
So, what does that mean for your average run of the mill 18 wheeler tractor trailer rig?
Each tractor usually has 10 tires, and your typical trailer has 8 tires.
https://www.answers.com/Q/Standard_size ... nd_trailer
A single axle can have 12,000 lbs max (a single tire on each side as in the steering axle)
A single axle with 4 tires (2 each side) is rated at 20,000 lbs.
Tandem axles, two axles within 5 ft of each other 36,000 lbs
As a list:
So if a tractor has a steering axle 12K (6,000 lbs per wheel at a minimum)
tandem driver axles 36k (4,500 lbs per wheel at a minimum)
tandem trailer axles 36k (4,500 lbs per wheel at a minimum)
4,500 - 3,500 / 10 = 100 lbs taxable per tire
100 tax lbs x $0.945 tax = $94.50 tax per tire
16 x $94.50 tax per tire = $1,512 tax per rig not including steering tires (subtotal)
6000 - 3500 / 10 = 250 lbs taxable per tire
250 tax lbs x $0.945 tax = $236.25 tax per tire
2 x $236.25 tax per tire = $472.50 tax for steering tires (subtotal)
Total excise tax for typical 18 wheeler tractor trailer rig = $1984.50
That's using minimum possible tire capacity.
I'll assume most tires have larger carrying capacity and therefore a larger tax.
So how long do these tires last?
https://www.answers.com/Q/How_many_mile ... or_trailer
However under normal conditions where air pressure is never checked curbs are hit and tires are never balanced you'll get between 50k and 75k.
So, around every 75,000 miles most tractor trailer rigs pay almost $2,000 in taxes just on tires.
https://www.answers.com/Q/Average_miles ... n_per_year
100,000 - 200,000 miles.
Let's average that to 150,000 miles.
So, your average interstate truck pays $4,000 in tire taxes every year. That's assuming they don't have a blow out.
How many tire gators do you see on interstates or other highways yearly?
https://hdstruckdrivinginstitute.com/se ... s-numbers/
There are nearly 2 million semi trucks in operation in the U.S., and around 5.6 million semi trailers.
That should generate between $4 billion and $8 billion annually in tire taxes.
Meanwhile, your typical suburban commuter in his personal vehicle pays zero tire taxes.
How much does the US collect in excise taxes?
https://www.taxpolicycenter.org/briefin ... they-raise
Highway-related excise tax revenue totaled $37.6 billion in 2017, 45 percent of all excise tax revenue. Gasoline and diesel taxes, which are 18.4 and 24.4 cents per gallon, respectively, make up over 90 percent of total highway tax revenue, with the remaining from taxes on other fuels, trucks, trailers, and tires.
Let's suggest 9% of $37.6 billion, which calculates out to $3.8 billion.
Take a closer look at the other excise taxes the US government taxes. You might be surprised what you are paying unknowingly.
Revenue from excise taxes dedicated to the Airport and Airway Trust Fund totaled $15.1 billion in 2017, accounting for 18 percent of all excise tax receipts.
Revenue from tobacco taxes totaled $13.8 billion in 2017, accounting for 16 percent of all excise tax revenue.
Excise tax revenue from alcoholic beverages amounted to $9.9 billion in 2017, 12 percent of total excise receipts.
Health-related excise tax revenue totaled $4.1 billion in 2017, 5 percent of total excise receipts, down from $14.8 billion and 16 percent of excise receipts in 2016. ($10 billion tax cut via Trump?)