WASHINGTON (Oct. 13)—Included in the Jobs Creation Act of 2004, which passed the Senate this week by a 69-17 margin, was a provision to simplify the federal excise tax on truck tires.
The provision changes the calculation of the tax to 9.45 cents for each 10 pounds of load capacity over 3,500 pounds; for bias-ply and "super single" tires, the rate is halved to 4.725 cents.
The Tire Industry Association, which had urged that the amendment be removed for later study, said its commercial tire and retreading members will be "very pleased" with the simplified calculations. "We're going to watch the super single portion of the provision, and if it turns out not to be revenue-neutral, we'll seek to have the matter reopened," said Becky MacDicken, TIA government relations director.
President Bush is nearly certain to sign the bill, which aims to create up to 500,000 new jobs by granting $126 billion in tax breaks to the pharmaceutical, high-tech, oil and gas, and other industries.