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05-27-2007, 08:25 AM
A stiff tax increase and $4-a-gallon fuel could end Americans' addiction to gas-hogging SUVs and curb dependence on OPEC. But don't count on politicians to line up for higher taxes.
By BusinessWeek
This article originally appeared in David Kiley's Auto Beat blog on BusinessWeek.com.
The average price of a gallon of gas is now above $3. That's affecting some car buyers' choices, as it has done whenever gas prices have spiked in the past two years. But it's still not high enough to spur the needed transformation of the U.S. auto fleet to much higher average fuel economy.
And that brings me to gasoline taxes, the one obvious measure that would move the U.S. to energy independence from the Organization of Petroleum Exporting Countries and substantially limit U.S. exposure to the political and ideological whims of the Middle East and Venezuela.
But don't hold your breath. Republicans running for the White House are lining up to take pledges for no new taxes, no matter how badly they are needed. Connecticut is actually rolling back its state gas tax by 5 cents a gallon to throw a bone to voters. Oh boy -- 5 cents! Ridiculous!
Democrats are showing no more courage, though they are talking more about the need for greater fuel economy. Sen. Chris Dodd, D-Conn., a presidential hopeful, is pushing for carbon taxes on auto makers. But he has said recently that "direct" taxes on consumers/voters aren't (politically) feasible. So much for "Profiles in Courage."
Conversations I have had with congressional staffers and one prominent Democratic congressman tell me that polling data going back to the 1980s shows that no tax increase would be more unpopular with voters than a gas-tax increase.
It's working for Europe
Europe has an average fuel economy for its new-car fleet of more than 40 miles per gallon. The European Union years ago amassed support among members for high taxes on gasoline, which drove a swift migration from big cars to smaller cars and to diesel fuel. The result: less dependency on OPEC and cleaner air in the cities.
A congressional staffer told me that to get a gas-tax increase across to the American voter, the president would have to drive a bipartisan effort, with the Democratic and Republican leadership of Congress standing behind him as he addressed the country in a series of speeches explaining the need for a higher gasoline tax, and that both parties would have to sign an agreement that neither side would use the tax against the other party in ads or rhetoric.
By BusinessWeek
This article originally appeared in David Kiley's Auto Beat blog on BusinessWeek.com.
The average price of a gallon of gas is now above $3. That's affecting some car buyers' choices, as it has done whenever gas prices have spiked in the past two years. But it's still not high enough to spur the needed transformation of the U.S. auto fleet to much higher average fuel economy.
And that brings me to gasoline taxes, the one obvious measure that would move the U.S. to energy independence from the Organization of Petroleum Exporting Countries and substantially limit U.S. exposure to the political and ideological whims of the Middle East and Venezuela.
But don't hold your breath. Republicans running for the White House are lining up to take pledges for no new taxes, no matter how badly they are needed. Connecticut is actually rolling back its state gas tax by 5 cents a gallon to throw a bone to voters. Oh boy -- 5 cents! Ridiculous!
Democrats are showing no more courage, though they are talking more about the need for greater fuel economy. Sen. Chris Dodd, D-Conn., a presidential hopeful, is pushing for carbon taxes on auto makers. But he has said recently that "direct" taxes on consumers/voters aren't (politically) feasible. So much for "Profiles in Courage."
Conversations I have had with congressional staffers and one prominent Democratic congressman tell me that polling data going back to the 1980s shows that no tax increase would be more unpopular with voters than a gas-tax increase.
It's working for Europe
Europe has an average fuel economy for its new-car fleet of more than 40 miles per gallon. The European Union years ago amassed support among members for high taxes on gasoline, which drove a swift migration from big cars to smaller cars and to diesel fuel. The result: less dependency on OPEC and cleaner air in the cities.
A congressional staffer told me that to get a gas-tax increase across to the American voter, the president would have to drive a bipartisan effort, with the Democratic and Republican leadership of Congress standing behind him as he addressed the country in a series of speeches explaining the need for a higher gasoline tax, and that both parties would have to sign an agreement that neither side would use the tax against the other party in ads or rhetoric.
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