A Nat'l Car Tax Would Enlist States as Federal Tax Collectors
Congressional Republicans are pushing a new bill that would impose federal taxes on electric vehicles and plug-in hybrids. The legislation, which has passed the House Transportation and Infrastructure Committee, would require state governments to collect these taxes. This move raises questions about the anti-commandeering doctrine that prevents Congress from forcing states to enforce federal laws.
- ▪The proposed bill would institute a $150 yearly federal tax on electric vehicles.
- ▪Plug-in hybrids would incur a $50 federal tax under the new legislation.
- ▪State governments would be responsible for collecting and remitting the new federal car tax.
Opening excerpt (first ~120 words) tap to expand
The legal principle dominating Supreme Court jurisprudence in recent decades known as the anti-commandeering doctrine, holds that the Constitution, in particular the Tenth Amendment, bars Congress from forcing state governments to enforce federal law, including federal tax law. Yet congressional Republicans are now advancing a bill that seeks to do just that, with the House Transportation and Infrastructure Committee’s May 22 passage of H.R. 8870, legislation that would institute a $150 yearly federal tax on electric vehicles (EVs) and a $50 tax on plug-in hybrids. The bill requires state governments to collect and remit this new federal car tax. Read Full Article »
Excerpt limited to ~120 words for fair-use compliance. The full article is at RealClear Markets.
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