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Republican senators call for $1,000 tax on new EV sales to pay for road repairs

A group of Senate Republicans on Wednesday proposed a $1,000 tax on new electric vehicle purchases to account for the cost of federal road repairs.
Republican senators, led by Kevin Cramer, have proposed a $1,000 tax on new electric vehicle (EV) sales starting in 2025 to fund road repairs, arguing that EV owners do not contribute to the Highway Trust Fund through gasoline taxes. This initiative comes as EV sales are expected to rise, potentially reducing revenue from gas taxes. The senators suggest that this tax could be offset by existing EV tax credits, effectively making the tax revenue-neutral for buyers. They also propose that the tax could be adjusted based on vehicle weight, with heavier vehicles like electric trucks facing higher fees. This proposal aims to address the shortfall in road maintenance funding as traditional fuel tax revenues decline.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/republican-senators-call-1000-tax-new-ev-sales-pay-road-repairs-2025-02-12/ ]