People who do this one job could pay $7,500 less in tax after new bill proposes rates to be slashed
Gerrard Kaonga
Featured Image Credit: Getty Images/Chip Somodevilla
American legislators have put forward a new bill that could immensely benefit people in this crucial sector.
With everyone counting their pennies, learning that you could pay less tax, let alone thousands of dollars less, is a pretty welcomed change of pace.
Unfortunately, not everyone would benefit from this new bill co led by Rep. Pat Ryan, the Democratic U.S. representative for New York's 18th congressional district - which targets one specific profession.
In a press release on March 27, Ryan said this: “They work long, hard hours with little support to make sure that people across the country have everything that they need for daily life.
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“It’s no wonder that job retention rates in the industry are declining.”
Now while this could apply to many industries and people, he is specifically talking about truck drivers, suitably naming the bill the Strengthening Supply Chains Through Truck Driver Incentives Act.
According to the American Trucking Association, there was a 78,800 shortage of qualified drivers in 2022.
The bill would create a refundable tax credit of up to $7,500 for truck drivers who drive up to 1,900 hours each year, and an enhanced tax credit of $10,000 for new truck drivers and people in trucking apprenticeships.
However, in the past, similar bills did not move forward.
For those that are new in the industry, they could also see significant benefit, according to the bill.
If it was enacted it would also allow rookies in the trucking field who fall short of the 1,900-hour criterion to claim a prorated tax discount, but this is only if they achieve fewer than 1,420 hours within the year, provided they average at least 40 hours weekly from the start of their careers.
Congressman Zachary Nunn, a Republican representative of Iowa, has also spoken about the importance of having a healthy number of truckers in the industry.
In the press release, Nunn said: “Right now, we're facing a serious shortage of truck drivers, and it's putting pressure on Iowa families and our nation's supply chains.
“We are experiencing both a recruitment and a retention problem in the trucking industry. This is a simple fix to help get more drivers behind the wheel - improving our supply chain and bringing down costs for every Iowan.”
Only time will tell if the bill is passed and proves to be a success for truckers.