Forget plug-in tax credits
Killing American fuel economyEthanol fans can't talk enough about how ethanol has helped America. Yet, when Congress struck a deal in 1988 to promote ethanol, they devised a tax credit scheme enabling 16 mpg gas guzzlers to have a fuel economy rating of 24 mpg. Thus, through the '90s, US automakers couldn't roll out enough gas-guzzling SUVs.
Yeah, that sure has helped America, not!
So, how are plug-in tax credits similar to flex fuel credits? They are not. Yet, I'd bet the first generation of plug-in vehicles are more about meeting new CAFE requirements than they are about killing the conventional vehicle. And, with billions in free money available both in cash handouts and tax credits, why not use that money to roll out enough plug-ins to attain green marketing cred and to help achieve new CAFE requirements?
Money for nothing and CAFE for free?
I say, enough government regulation. Let's make it easy. Increase oil taxes on gasoline, diesel, or any other petroleum products, and let consumers and innovators decide the winners. The flex fuel credit has proven that the government might have good intentions, but seldom do their intentions achieve intended results.
Labels: CAFE, fuel economy, gas tax
posted by Dahcredyns at
7:36 AM
3 Comments:
Hmm, I like the idea of a gas tax, and even eliminating the CAFE in exchange sounds interesting. However, I don't think CAFE standards are an example of the government meaning well. They are an example of Dinosaurs like Dingell being in cahoots with Detroit lobbyists. That ends now. Let's talk in 2009 about what government does when it ACTUALLY means well.
Well, I think CAFE has always had good intentions behind it, it's just that there hasn't been enough support in Congress to make CAFE effective. And, let's be honest, a few years ago, fuel economy was far less important than cupholders to the far majority of auto consumers.
Still, CAFE was never needed. Gas taxes should have been made higher decades ago, but the idea is political suicide in this country.
Cheap gas has stupefied Americans and eventually that fact will butt heads with the new government. While I have hope for the new government, I'm not sure that "the people" are ready for change if it costs them even a little, but how can it not?
I'll keep my fingers crossed, but I definitely have doubts, especially if gas prices stay recessed for an extended period of time.
My hope is that the people were "stupefied" not just by cheap gas but by intensive Detroit lobbying and PR. Assuming both those factors are dead, I think there is a good chance that real leadership on the issue of foreign oil independence will get through to the people.
Remember we've just been through 8 years were, while the glaciers melted, our President and Vice President has practically begged us to buy Hummers and NOT conserve.
But now, Detroit will soon be neutered if not with the program, and psychologically American's may be ready to believe that cheap oil is neither cheap in terms of American blood and treasure nor likely to remain cheap for long. What happens when an American President says, "Our sons and daughters have died for oil and we as a nation have the power to make sure that never happpens again."
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