Jun. 2 at 8:11 PM
Paccar shares rose Tuesday after Reuters reported that two U.S. senators introduced bipartisan legislation to repeal the 12% federal excise tax on heavy-duty trucks. Republican Senator Todd Young and Democratic Senator Angela Alsobrooks argued that the tax adds between
$15,000 and
$30,000 to the purchase price of new heavy trucks, trailers, semitrailers, and tractors, increasing costs for fleet operators.
The senators said the tax discourages companies from replacing aging vehicles, contributing to an older truck fleet on U.S. roads. According to Reuters, about 20% of the largest trucks currently in operation use engines manufactured before 2010. Supporters of the proposal believe eliminating the tax would encourage the adoption of newer trucks that are more fuel-efficient, safer, and produce lower emissions, potentially benefiting truck manufacturers and suppliers.
$PCAR