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WSJ: Higher gas taxes better strategy than CAFE to save GM

Posted in : www.depozitul.net

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  Mon, Jul 06 2009, 10:25

Chevy Cruze - Click above for high-res image gallery Ford Executive Chairman Bill Ford and AutoNation CEO Mike Jackson were just two voices that spoke out in favor of a higher gas tax earlier this year. While we took the Cato Institute's Alan Reynolds to task for muddying the waters of the "Toyota-licensed hybrid Fusion" , there's reason to look deeper at his argument that a higher gas tax isn't just a good way to encourage sensible car purchases, but also to save GM. Reynolds writes: The federal fuel tax is highest on the most efficient fuel (diesel) and below zero on the least efficient fuel (ethanol). Cars get about 30% better mileage on diesel than on gasoline, and cars running mainly on gasoline get about 30% better mileage than they would using 85% ethanol. To stop distorting consumer choices, simply apply the same 24-cent-a-gallon federal tax to gasoline and ethanol as we do to diesel. This would add funds to the depleted federal highway trust. ... http://www.depozitul.net/2009/07/wsj-h...

[More related posts here] tags :  gas tax ,   gmbankruptcy

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