Hay Feeder
Well-known member
Some fellas are spreading around at $1.75 gallon gas tax proposed.
IS there any truth to this???
IS there any truth to this???
Auto Execs Say Raising Gas Tax Will Boost Fuel Efficiency
Auto industry executives aren’t terribly popular these days, and they’ll become less so now that some of them say the best way to boost fuel efficiency is to increase the gas tax.
They stepped on that third rail today during the Reuters Auto Summit in Detroit when they said $4 gasoline would do more to cut fuel consumption than the $25 billion federal program aimed at spurring the development of fuel-effieient automobiles. They noted that sales of the Toyota Prius spiked last year along with gas prices, but gave way to bigger, thirstier cars as gas dropped below three bucks a gallon. The national average price at the end of last month was $2.66 a gallon.
“The U.S. allows the price of gasoline to go back and forth across this line where the consumers don’t care about fuel efficiency and where consumers do care about fuel efficiency,” Mike Jackson, head of AutoNation Inc, the nation’s No. 1 auto retailer, said, according to Reuters.
Gas at $4 or even $5 a gallon would do more to spur demand for so-called next-generation vehicles like the Chevrolet Volt than any policy initiatives, the execs said. “Unless gas is $3.50 or $4 a gallon, consumers are not going to want to buy those cars,” said Jerry York, a former GM board member and an adviser to billionaire investor Kirk Kerkorian.