Hyundai adds name to gas tax call
One of Hyundai's hybrid conceptsAside from economic recession, fluctuating gas prices are also contributing to the decline in US auto sales, according to Hyundai's top US executive. Because consumers don't know whether gas prices are going much higher, or possibly much lower, John Krafcik told the AP that many consumers are left feeling paralyzed. Quite simply they are afraid to buy the wrong vehicle.
Thus, Krafcik suggested a flexible gas tax to help stabilize gas prices by putting a bottom on the price of gas.
posted by Dahcredyns at
9:00 AM
15 Comments:
I'm sorry, but a gas tax is a terrible, terrible idea. As soon as the government announces a gas tax, can you imagine the publicity and public outrage? Not to mention the inevitable stock market plunge that will follow afterwards. We have so many taxes in this country: I am not a conservative, but a gas tax is not the way. Let capitolisim work, and stop giving away all this money. If anything, give it to Ford. They've done something right. If they didn't put they're technology into a large, heavy car, they may have matched or beat toyota and their prius in a same size car. No gas tax! We aren't socialists!
There are so many of you out there that are against a gas tax but want more hybrids and electric vehicles.
Unfortunately, those two things are mutually exclusive from each other.
Americans will not begin buying hybrids and other fuel efficient vehicles in significant numbers as long as gas prices remiain low.
"We have so many taxes in this country..."
Uh, yeah, not really. The whole point of the American system is that we are taxed much less than Social Democracies like in Europe. You know who has really low taxes, though? The third world. They don't even really pay income taxes in places like India and Mexico.
"Let capitalism work..."
Uh, yeah, like the way hybrids were created because those socialist Californians wrote rules mandating low pollution cars in the 1990's. Or the way that Toyota gets very nice govt investments to develop things like their hybrid technology.
A gas tax could even be offset by other tax cuts.
There's one major flaw in your "Capitalism" theory.
The fact that the U.S. spends trillions of dollars on Military costs protecting oil shipping lanes and fighting wars to protect oil, but doesn't pass that cost along to consumers in the form of a gas tax. Our current gas tax isn't even enough to keep or roads and bridge operational, much less pay for Military costs.
As a result gasoline is "government subsidized".
While other countries are subsidizing hybrid technology, the U.S. is subsidizing "oil".
No wonder we're addicted to oil. The government is helping to finance that addiction.........
And that last point is really the key. In truth, we probably don't need a new tax, we just need to pay the real cost of gasoline at the pump, rather than in hidden military taxes, etc.
Likewise, the gas tax revenue could be used for consumer tax credits to buy more fuel efficient vehicles. Thus, the gas tax increase in gas cost could be offset by technology, and the technology is paid for by the gas-tax derived revenues.
Here's the deal with gas taxes....
If an increase in gas taxes leads to an equal amount of increased fuel efficiency, the increased cost to the consumer will be zero...
Example...
18 mpg at $2.00/gallon is the same as 36 mpg at $4.00 per gallon.
plus, you could pay for some of t the cost difference of buying a hybrid versus a non-hybrid with the gas tax revenue as well.
yes a gas tax would hurt those in older cars and some businesses using older technologies, but wouldn't that be a better way to offer incentives to respark the car market, rather than cash for clunkers?
i mean, if we were paying the oil shipping lane security costs alone, at the pump, most consumers would already be ready to go hybrid.
a smart gas tax is actually a much more consumer-friendly way of fixing a massive problem. moreover it's a fix that offers huge upside potential. without doubt such a program could offer guaranteed ROI.
and it could be very simple and transparent.
considering the ridiculous amount we're going to spend saving the US auto industry, why not kick it up a big notch?
"We aren't socialists!"
You claim that you are not conservative but you are using Sean Hannity's and Rush Limbaugh's favorite battle cry.
It looks like Hannity's "socialist" scare campaign is working...
ANON:
Capitalism works in a free market...not a manipulated one.
Sorry this post is so long but we need to seriously consider what our alternatives are to a gas tax.
I usually try to be positive when I write something and normally suggest some type of alternative to just complaining, so here is an idea I think might have some merit. Notice I did not say it was a good idea or the best idea – just an idea ;-)
If we are really serious about going green in the U.S. then challenge your current legislator to present a bill in Congress to raise the Federal gas tax $1.00 per gallon. One provision of the bill would be that the federal government would only get to keep 10% of the money to administer the program and the other 90% would be used exclusively for green energy projects. Initiating such a bill would however take real courage but lets look at what might happen.
A. Ninety percent (90%) of every dollar collected could be channeled to fund energy independence for our country. That's about $137 billion dollars a year to fast track the renewable energy initiatives that currently seem to be an important part of the Presidents agenda [see note 1 below]. If we spent that much every year we wouldn't need Cap and Trade, a Carbon Tax or any other carbon reduction program. I guess you can say that a gasoline tax is a carbon tax and I wouldn't argue that point. If you are really serious about carbon reduction we need to do this or something like this. The alternatives are not very pretty.
B. In just 10 years [$1.3 trillion] we could reduce our carbon foot print to a level that would make the United States a world leader in carbon reduction. We would also be well on our way to becoming energy independent.
C. Raising the gasoline tax would not prevent anyone from driving as far as they want and yes it would be hard to swallow for at least a few months or maybe even years until new more fuel efficient vehicles are mainstream. It MIGHT also begin the process of changing our CULTURE to value conservation instead of consumption thereby further reducing our carbon output, and;
D. A gasoline tax would be far more palatable to the general public than a punitive tax that punishes people like Cap and Trade or some other government carbon tax. As I write this in June of 2009, Cap and Trade legislation is being rushed through Congress. If Cap and Trade passes, everyone's energy bills will increase at least 20% and some studies suggest as much as 75%. This means the taxing of all carbon like; natural gas, gasoline, your electric bill, diesel fuel, heating oil, coal, engine motor oils, every carbon product will be taxed.
I wished I could take credit for this idea but it isn't mine and it isn't new. It was well documented long ago by someone many people admire namely Lee Iaccoca. He thought we should have increased gasoline taxes way back in the 80's by $.25/gallon. I guess adjusted for inflation $1.00 per gallon might be a little high but then again we are currently facing some very unusual economic circumstances in our country.
tomgarven@hotmail.com
Note 1: Finished Motor Gasoline, 2008 - 3,280,964,000 barrels x 42 = 137,800,488,000 gallons, http://www.americanfuels.info/2009/03/2008-gasoline-consumption.html
Tom-
And I think that if such an idea was presented to the people in a way that is totally sold as an end to foreign oil dependency, you might get the people on board.
The people just don't seem ready to rally around cap and trade. Foreign oil dependency, however, is an issue that survey after survey demonstrates has real resonance.
Obviously the current energy bill now working its way through the House might end this whole discussion. However, if Congress cannot pass cap and trade, I hope that they'll consider something like a gas tax built around ending foreign oil dependency.
If cap and trade does pass, I'm not really sure that I believe that it will really have any major impact on foreign oil dependency any time soon. Despite the President's assurances that his energy bill is perfectly written, Congress always has a way of turning complex legislation into cluster f_cks.
Something like a gas tax, it seems to me, could be much more transparent than cap and trade, and simpler to execute.
Tom,
We've had a lot of discusion about the military cost of protecting oil.
Here's an alternative to a gas tax....
Why doesn't the U.S. government simply charge the oil companies for their security services?
The oil companies would have to pass that cost on to the consumer.
The results would be the same as a gas tax, but without all those fears people have about the gov't wasting their tax dollars.
To: Smurf
Your idea has merit. See what happens when teams go to work - all the good ideas come out. Ideas far superior to the Cap and Tax Bill - that's what they are calling it today on C-Span.
Let's see what we can accomplish with your idea.
Smurf wrote: "Why doesn't the U.S. government simply charge the oil companies for their security services? The oil companies would have to pass that cost on to the consumer. The results would be the same as a gas tax, but without all those fears people have about the gov't wasting their tax dollars."
Tom Writes:
The government could use the money to reduce the deficit or pay for more renewable energy projects which would reduce dependency on foreign oil and cut greenhouse gas emissions.
Sound good to me.
The House of Reps passed Cap and Trade legislation this afternoon by a small margin. Makes our discussion of a gas tax as an alternatives to higher taxes on carbon sort of meaningless. Only thing we can do now is hope some members of the Senate step forward and the bill does not pass there.
If this passes and the President signs it,[which he is expected to do] it will create about 12 new government agencies, increase the taxes on: gasoline, our utility bills, food, medicine, and everything made from a carbon product [like natural gas, oil and coal] or the energy used to produce the product. The cost of building permits will increase and will force new regulations of what you can build and how it will be built and a whole host of other restrictions on the American people. One of the Representatives made the comment that all houses must be built to the California building standards. I would love to see how a California stucco house stands up to the 30 degree below zero weather in Minnesota.
This is a sad day for our country.
If you care to send me a private e-mail please put 'HYUNDAI comment' in the subject line so I don't delete it.
Sincerely
Tom Garven
tomgarven@hotmail.com
Tom,
Like you I'm not a huge fan of the cap and trade plan. Ultimately, for me, I just don't think it's very efficient legislation.
This is a very contentious issue and it took a lot of political pork, paybacks and other games to push this legislation through the House. Even worse, aside from the wasted money, this is also a recipe for gross loopholes.
Still, very little in Congress isn't changeable. The voice of the people always has a chance to resonate.
Moreover, the Senate has yet to vote. So, this game is far from over.
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