Thread: Truckers Wory Mexican Carriers Could Avoid Taxes

The Morning News
Local News for Northwest Arkansas

Truckers Wory Mexican Carriers Could Avoid Taxes

By Aaron Sadler
The Morning News
WASHINGTON - Bush administration officials sparred with lawmakers Tuesday over a program to allow Mexican truck drivers in the U.S., amid new concern the foreign truckers may be tax scofflaws in Arkansas and elsewhere.

The head of the Arkansas trucking lobby said the state has few means to account for Mexican trucks and assess taxes. That gives Mexican carriers an economic advantage, said Lane Kidd, president of the Arkansas Trucking Association.

A U.S. Department of Transportation official disputed that, saying Mexican truckers who participate in the pilot program must follow the same tax and registration guidelines as their American counterparts.

Trucks originating in Mexico have been allowed in the United States since September. The move is viewed as a first step toward opening up the border to Mexican trucks to comply with the North American Free Trade Agreement.

Congress cited safety concerns in its attempt to derail the program last year.

Kidd said in a telephone interview that he is more troubled by the competitive advantage gained by foreign trucking companies with low-paid drivers who escape a tax burden.

"There is no assurance that these companies will pay the same taxes and fees that American truckers pay," Kidd said. "We do not oppose Mexican trucks coming in here, as long as those trucks play by the same rules."

The rules are indeed the same, countered John Hill, administrator of the Federal Motor Carrier Safety Administration. Like American carriers, Mexican companies in the program are required to register with a clearinghouse for per-state taxes and fees based on mileage in each state.

All truckers who drive through Arkansas must pay licensing fees, fuel taxes and an ad valorem, or property, tax.

Truckers not registered through the clearinghouse must purchase a trip permit when entering a state.

Because not all points of entry are monitored at all times by state highway police, then nonregistered truckers sometimes avoid Arkansas taxes.

Kidd said Mexican drivers are much more likely to avoid a tax burden because the companies are not required to register through the clearinghouse.

The drivers must be registered, as required by the program, Hill said. Unregistered American drivers could avoid paying for a trip permit just as easily, he added.

"(Mexican carriers) are subject to the same requirements," Hill said. "If they get caught, they would be just like any other driver who cheats and gets caught."

Randy Ort, spokesman for the Arkansas Highway and Transportation Department, said inspection or licensing problems with Mexican truckers had been "virtually nonexistent."

Tim Leathers, revenue chief for the state Department of Finance and Administration, said collection of trucking taxes is an ongoing problem.

"We are aware there are concerns that these (Mexican) truckers might not properly register," Leathers said. "We try to police and stop trucks that aren't properly registered. It happens all the time with trucks."

U.S. Transportation Secretary Mary Peters said at a Senate hearing her department would look into the tax issue as it relates to Arkansas and its collection of ad valorem taxes in particular.

Peters was on Capitol Hill to defend the program, even after Congress last year approved a bill lawmakers thought would end it.

The administration moved forward because statutory language only prohibits the Department of Transportation from establishing a new program. It does not prevent implementation of one already in place, Peters argued.

But Sen. Byron Dorgan, D-N.D., said that was "sheer nonsense."

Mexican safety standards are not on par with American regulations, opponents said. For instance, no central registry exists in Mexico for driver licensing, accident reports and vehicle inspections, according to Dorgan.
http://www.nwaonline.net/articles/2008/ ... ntruck.txt

Paying the taxes isn't the only worrisome thing about the Mexican truck program. What happens, after this first year of the "pilot" program, when Mary Peters, Jorge Bush and other capitol hill elites decide that what Congress says doesn't apply to them...again? They will (again) arrogantly and willfully forge ahead, invite more and more unsafe, cheap Mexican trucks and drivers into this country to deliver more cheap, crappy Mexican goods to Americans. This will result in even more job loss for Americans. Who will suffer? American truckers? You bet your backside! Not only that, but we will see more American companies move manufacturing operations south of the border and hauled back into the good ol USA by - You guessed it - MEXICAN TRUCKERS! Who else suffers besides American truckers? Every single American will pay the price - Crappy, foreign made goods, contaminated produce, unsafe foreign trucks on our roads with non-english proficient drivers, and so on. This entire program MUST be scrapped, burned and buried! WE DO NOT NEED MEXICAN TRUCKS ON OUR HIGHWAYS. Between the safety issues and unfair competition with American truckers it's a NO WIN SCENARIO... for US!