Provision combines the charms of the IRS and the DMV
The House Transportation and Infrastructure Committee passed a bill to impose a new national car tax that would increase the cost of vehicle ownership for American families and turn state DMVs into IRS-like tax collectors for the federal government.
The proposed car tax is estimated to raise taxes on American drivers by $30 billion. It would hit millions of working households starting on Oct. 1, 2026.
Car taxes are among the most hated taxes in America.
The bill imposes a $150 annual federal tax on electric vehicles (EVs) and a $50 annual tax on plug-in hybrids, and would immediately be extended to gas cars the next time Democrats run Washington.
The bill turns Your DMV into a Branch of the IRS
The legislation would require state motor vehicle departments to become revenue collectors for the federal government, holding them responsible for collecting the new car tax.
‘(1) COLLECTION OF FEE.—A State motor vehicle department, or an equivalent to such department, shall—
‘‘(A) incorporate the collection of the fees established under subsection (a) into the vehicle registration and renewal processes administered by such department, so long as such fees are imposed for each year in which the fees are required;
Americans are in no mood for a car tax
Even in the blue state or Oregon this week, voters rejected a car tax and gas tax hike by an overwhelming 83%.
Severe Punishment from DC for Noncompliance
If a state doesn’t want its DMV to become tax collectors, the legislation would have them punished by instructing the Administrator of the Federal Highway Administration to withhold 125% of funding otherwise due to states.
Once this punishment structure is in place, progressives will use it to impose radical climate restrictions on Americans.
Putting feds inside the DMV is dangerous
Once this IRS plumbing is installed in your DMV, there’s no telling the ways Democrats will use it to impose not only federal car taxes on all cars, but also various “climate” taxes and fees in their Green New Deal war on fossil fuels and the American dream of independent car ownership.
Conservative Lawmakers Rightly Blew Up the Car Tax Last Year
A similar proposal from the Transportation and Infrastructure Committee was pushed during reconciliation last year that would’ve implemented a $20 levy on all standard gas passenger vehicles, alongside a $200 fee for electric vehicles and $100 for hybrids. That tax increase was lambasted by conservative lawmakers including Rep. Chip Roy (R-Texas) who questioned the sanity of Republican proponents of the car tax:
“Are you out of your fricking mind? Like, the party of limited government is gonna go out and, ‘say we’re gonna have [a car tax]? You know what I was told? ‘Don’t worry about it. We’ll get rid of it later in the highway bill.”
House Conservatives even sent a letter to the Senate GOP during reconciliation urging them to strip out the car tax in section of the letter titled “No New Car Tax.” The Senate agreed and removed any car tax from last year’s final reconciliation bill.
The car tax measure steals $104,000,000 from taxpayers for the privilege of imposing the tax
From the bill text:
“There is authorized to be appropriated $104,000,000 to carry out this subsection, to remain available until September 30, 2030.”
The car tax is hiked automatically without a vote from Congress
The bill will increase the national car tax on autopilot until they hit $150 and $50.
American drivers are not an ATM for Washington DC.
Grover Norquist, President of Americans for Tax Reform, appeared on Newsmax Tuesday afternoon and blasted the new car tax:
NORQUIST: “As soon as the Democrats get into power, they’ll say, ‘oh my goodness, there’s the gas car loophole. We must have the car tax on all cars.’ And then it won’t just be the EVs, it’ll be everybody. It won’t take them two weeks to do it.”
Americans for Tax Reform opposes this $30 billion tax hike and urges Congress to reject this unnecessary and harmful tax increase on American drivers.
