Congress Debating Federal Car Tax
Posted: Apr. 29, 2010
In 1980, there were half as many cars on American roads as there are today. And there were more than twice as many auto safety investigators. In the aftermath of a series of high-profile safety recalls, some in Congress think it’s time to take another look at how much money we spend on enforcing auto safety rules. But how will we pay for it? Potentially, with a federal car tax.
The Detroit News reports, “Two key members of Congress are drafting major reforms of auto safety laws in the wake of Toyota Motor Corp.'s massive recalls that could include a fee on new car sales to fund more federal oversight.” The key figures behind the effort are Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce Committee, and Rep. Henry Waxman (D-Calif.), chairman of the House Energy and Commerce Committee. The pair “is expected to release draft auto safety legislation later this week that will require all automakers to install anti-runaway technology, such as brake override systems, stop-start technology and event data recorders.”
The bill may also propose expanding the National Highway Traffic Safety Administration. Kicking Tires notes, “Proponents of the bill point out that in 1980, NHTSA had 119 people working on enforcement, but due to budget cuts in the ensuing years, the agency now has roughly half that number.” CBS News reports, “Of the [NTSC’s] 57 employees, only 18 are investigators. NTSC’s budget is only about 15 percent of the Department of Transportation budget, even though highway and road accidents account for the vast majority of transportation deaths in the United States.”
But funding an increase could be a problem. The Detroit News quotes “Congressional aides briefed on the proposals,” as saying the bills may include “a small fee on new car sales that would fund an increase” in the agency’s budget. The amount of the fee has not been disclosed.
LINK:
Congress Debating Federal Car Tax - U.S. News Rankings and Reviews
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