House Republicans are moving ahead with a tax on cars, but they say it will be offset by other measures to spur economic growth.
Rep. Pete Sessions, R-Texas, said Tuesday he is sponsoring the House Republican Tax Reform Act, which would tax cars and other vehicles that have a gross vehicle weight rating of more than 8,000 pounds and a gross registration weight rating greater than 10,000.
The bill would also limit the tax on rental car rentals to vehicles that are at least 4,000 lbs., the limit for vehicles with a gross rating of 5,000, or less.
Sessions said he wants to make sure that the tax doesn’t just be on cars but on all vehicles, including trucks, SUVs and other heavy-duty vehicles.
The GOP bill also would extend the temporary credit for fuel costs for vehicles to Jan. 1, 2021.
He said the goal is to help pay for the transportation infrastructure needed for the coming years.
“That’s not going to happen overnight,” Sessions said.
“We’re going to work with the private sector to make it work,” he said.