Automotive Fleet
MenuMENU
SearchSEARCH

Report from the Editor

At the time someone said: "Only two things are inevitable-death and taxes," it was unlikely that one could be contributory to the other. Today all this is changed.

by Bob Lewis
June 1, 1965
3 min to read


At the time someone said: "Only two things are inevitable-death and taxes," it was unlikely that one could be contributory to the other. Today all this is changed. Not only does death activate many taxes on the estate of the deceased and the inheritance of the surviving heirs, it also works in reverse. Taxes cause death, just as death causes taxes. Every time a small business fails, one of the major contributing factors is the high rate of taxation. In the case of those businesses unfortunate enough to have competition from their own government invading the realm of private enterprise, taxes are the major cause of business failure. Government operates with an unfair competitive advantage by being financially able to continue indefinitely at tremendous capital losses then taxes competitive private enterprise to support these losses and perpetuate the unfair competition. Another way of saying this is to point out that government ownership of business is the aim of the socialist who believe that government is better able to do for man those things which he ought to do for himself. Socialism is, therefore, governmental take-over of business whether it be by outright mandate or by taxing private enterprise out of business. Government competition certainly helps hasten the latter.

Ad Loading...

The leasing and rental industry, the automotive industry and the many companies in all industry that operate automotive fleets, are certainly aware of the tax grab that is on. As individuals we can feel the increases not withstanding the current administration's guarantee that this really was a tax cut. The percentages might have been lowered as a token to show good faith with the electorate, but this did little good when the exemptions were reduced so that while, the government assures us, we are paying less taxes-it's costing us more money. And this is only the beginning.

Ad Loading...

Twenty-three states are increasing taxes on everything from cigarettes to personal savings accounts. The operator of a car leasing or rental company is in for it twice. In the case of fleet operation this newest clout can be tremendous. Gasoline prices will be raised from 2c to 5c a gallon. This is a certainty in most states although some of them won't get around to it until next year. But this isn't the only blow. Illinois, under the usual guise that the new proposal is actually cutting taxes, would put a 4 percent use tax on all leased and rented property. This hits the newlyweds when they rent the traditional punch bowl for the reception; the home-owner who wants to rolo-till his tomato garden; the businessman who uses rental office equipment, and ALL RENTAL AND LEASE VEHICLES in the state.  Illinois already collects the 4 percent on cars when the title is issued in the State. Now this collection will become an annual event. It is easy to see that leasing companies in Illinois are placed in the impossible competitive position which, for example, would allow a company in Chicago to enjoy a savings of as much as $100 on each leased vehicle simply by going to an out-of-state source. With such a tax, Illinois is penalizing local business. With a tremendous back-log of road repairs, Illinois is seeking a 3c per gallon increase on gasoline taxes, only one third of which is intended for road maintenance. The remaining 2c per gallon is slated for "other" uses. This is a discriminatory tax which penalizes the man who uses a car to earn his living. Between the two tax proposals, the Illinois fleet operator will be faced with double and discriminatory taxation for highway taxes, most of which will be diverted to deficit areas such as Aid to Dependent Children. It would appear that Illinois is proof that taxes can cause death by driving business out of state at the expense of its own businessman.

Topics:Operations
Subscribe to Our Newsletter

More Operations

Automotive Fleet News Recap thumbnail featuring a woman in a blue sleeveless top looking toward the headline, “90% Use Telematics. Are Fleets Getting Safer?” against a dark blue background with bold red accents.
Operations•by Faith Howell•November 6, 2026

90% Use Telematics. Are Fleets Getting Safer? | AF News Recap

This week, we're breaking down which industries have the highest rates, how Jamie McKay manages 2,400 vehicles, what's happening with the 2027 fleet awards, and why software-defined vehicles could introduce new costs.

Read More →
Collage of FFC2026 roundtables
Operations•by Chris Brown•November 5, 2026

What's Best Handled by an FMC, and What's Better Done Directly?

Fleet managers continue to rely on FMCs for essential services but are taking a closer look at where working directly with suppliers can improve efficiency and responsiveness.

Read More →
Erin Gilchrist, inaugural Mike Antich Spirit of Fleet Award winner, featured in Automotive Fleet's Fleet Meets series, wearing a charcoal blazer against a white background.
Operations•by Faith Howell•November 5, 2026

Fleet Meets: Erin Gilchrist

Meet Erin Gilchrist, the inaugural Mike Antich Spirit of Fleet Award winner, as she shares insights on leadership, mentorship, the power of industry connections, and why people remain at the heart of fleet's future.

Read More →
Ad Loading...
Automotive Fleet video thumbnail featuring Jamie McKay alongside a male interviewer, with the headline “Jamie McKay Gives Fleet a Voice With Her Company’s Leadership” against a blue and black background.
Operations•by Chris Brown•November 4, 2026

How 2026 Fleet Visionary Jamie McKay Manages 2,400 Vehicles Across 37 States

How do you keep 2,400 vehicles running across 37 states? Fleet Visionary Award winner Jamie McKay shares how collaboration, flexibility, and a few simple strategies help her tackle fleet management challenges at Aptive Pest Control.

Read More →
Fleet operating costs for 2026 over image of a service center
Operations•by Chris Brown•November 1, 2026

Managing Fleet Costs in an Era of Permanent Volatility

Fleet operating costs have risen more than 20% since 2020, raising a key question: When does extending a vehicle's service life stop making financial sense?

Read More →
An Automotive Fleet podcast thumbnail
Operations•October 29, 2026

The Next Evolution of Fleet Management: Autonomous Operations

This opening keynote session at the Fleet Forward Conference highlights the future of autonomous driving for fleets.

Read More →
Ad Loading...
A picture of a transparent catalytic converter with blue text and the Automotive Fleet logo on the top.
Operations•October 29, 2026

How to Reduce the Total Cost of Risk From Catalytic Converter Theft

A stolen catalytic converter can cost fleets far more in downtime and lost productivity than in repairs. A total-cost-of-risk approach can help fleet managers quantify their exposure and prioritize theft prevention.

Read More →
AF news recap thumbnail
Operations•by Faith Howell•October 26, 2026

Personal-Use Charges Rise as Vehicle Values Fall | AF News Recap

Personal-use charges are climbing, wholesale used-vehicle values are declining, and commercial fleet sales growth is slowing. This week, we're breaking down the latest fleet data, plus how Element Fleet Management is helping Waymo prepare for its first Canadian robotaxi market.

Read More →
A transparent blue background of a hand stamping a paper is the background of text that says "What about fleet policy exceptions?" with the Automotive Fleet logo in the bottom right corner.
Operations•by Faith Howell•October 20, 2026

Here's When You Should Make an Exception to Fleet Policy

Fleet policies are designed to create consistency, but not every driver or situation fits neatly within standard rules.

Read More →
Ad Loading...
A hand writing on an ipad with a transparent AI graphic over it
Operations•October 20, 2026

AI-Native or AI-Acquired: What Should Fleet Managers Look for in an AI Platform?

Six questions can help fleet managers look beyond AI marketing claims to evaluate integration, data access, and real-world operational performance.

Read More →