What is National Car Rentals position on car rental excise taxes funding unrelated community projects like stadiums, arts centers and highways?
Car rental excise taxes have cost consumers and businesses $7.5 billion since 1990. Yet there is no special benefit for car rental customers, nor is there a direct connection between renting a car and using these public facilities or programs. Such arbitrary taxation is blatantly unfair not only to out-of-towners, but also to local consumers and businesses. It also violates the “benefit principle,” which holds that tax burdens should be assigned according to the benefits that taxpayers receive. As a result, federal legislation may be needed to prohibit discriminatory car rental excise taxes – and to protect the rights of consumers and businesses, whether they rent cars out of state or in their own hometown. Local government authority – including “states’ rights” – is a cornerstone of U.S. democracy. And we understand that cash-strapped municipal, county and state governments continue to look hard for revenue sources to fund worthwhile civic projects. However, as municipalities, countie
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