Gas Guzzler Exemption for Light Trucks Background A federal "gas guzzler" tax is collected on new automobiles that have a fuel economy rating of less than 22.5 miles-per-gallon (MPG). Mini-vans, sport utility vehicles, and automobiles weighing more than 6,000 pounds are exempt from the tax. Without these special exemptions, two out of three light trucks sold in 1996 would have paid a gas guzzler tax. The tax ranges from $1000 for automobiles with MPG standards of between 21.5 and 22.5 to $7,700 for vehicles with MPG standards of less than 12.5.
Green Scissors Proposal Close the loophole in the "gas guzzler tax" that exempts light-duty trucks (mini-vans and sport utility vehicles) and automobiles heavier than 6,000 pounds.
Project Hurts Taxpayers This tax exemption allows auto manufacturers, such as Ford, General Motors, and DaimlerChrysler, to reap higher profits at taxpayer expense because money that should be going back to the Treasury is going into the manufacturers' coffers. This subsidy is at odds with another wasteful program called the Partnership for a New Generation of Vehicles (PNGV) that subsidizes the same auto manufacturers to develop more fuel-efficient vehicles.
Project Hurts Environment Automobile pollution accounts for approximately 22 percent of CO2, 8 percent of the soot pollution and 30 percent of the smog pollution in the U.S. Estimates show that shutting down this huge loophole would improve fuel economy in the new truck fleet by about 10 percent and reduce greenhouse gas emissions by 20 million metric tons by 2010.
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