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<p>If I pay a tax and you don't, irrespective of what you call it, you have a tax advantage. If you pay property taxes and I don't, irrespective of what you call it, I have a tax advantage. However, they don't cancel each other. The net effect depends on the tax shield of the companies, which differ for each company.</p> <p>Whether the total taxes paid by truckers compensates for the wear and tear that they do to the roadways is another issue. </p> <p>In 2011, the Norfolk Southern had an effective income tax rate of 34.34 per cent. JB Hunt Transportation had an effective income tax rate of 38.22 per cent. JB Hunt pays fuel taxes, property taxes, inventory taxes, etc. Norfolk Southern pays property taxes, inventory taxes, etc. This is a small sample, to say the least, but it shows that what may be crystal clear with respect to taxes quickly becomes opaque when one drills into the numbers.</p>
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