Agreeing with the Big 3: Let’s curb car rental tax

In some Metro areas, like Detroit, it can be very difficult to go car free. One option is to simply rent a car as needed.

However, that option is increasingly more expensive as governments across the U.S. have added car rental taxes.

According to a Detroit News article:

Since 1990, local and state governments have collected $7.5 billion in rental car taxes. Often, the money is used to bankroll programs and projects such as sports stadiums and convention centers.

It really doesn’t make sense for locals to pay for stadiums and convention centers when renting cars. And Detroit’s Big Three and UAW agree. They are asking Congress to “to bar new rental car taxes.”

“The main argument used to support these discriminatory taxes on rental cars is that tourists, who are incorrectly assumed to be affluent, are paying them. So it’s supposedly some type of ‘luxury tax.’ This is factually not true,” said Stephen Collins, AAPC president.

“The reality is that a major percentage of cars are rented in the U.S. by low- and medium-income consumers. That fact is backed by figures showing that more than half of all cars rented are from neighborhood locations, not airports. This pattern of misdirected and clearly discriminatory taxation hurts consumers of all income levels, absolutely hurts American jobs.”

We agree this taxation is misdirected but especially as it makes the car rental option more expensive for cyclists who don’t own their own vehicle.

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