I steal posts because it is so easy

Pilfered from Mankiw (Pigou Club News):

It is rare to see a CEO call for a tax on a complementary product, but it can happen if the alternative is worse.

Mulally: Gas tax worth exploring

Ford Motor Co. CEO Alan Mulally called the federal government's mandatory fuel economy requirements a failed program and suggested a tax on gasoline might do more to achieve energy independence and help the environment....

"I have never seen a market-distorting policy like CAFE," Mulally said. "It's a policy that forces you to put out more small cars than there is consumer demand for to make the bigger cars that people really do want. "You're trying to force the market instead of being market-driven."

Comments

[Bates]

This comes at almost the same time that Cato releases a report, calling for the abolishment of a federal gas tax.

They argue, pretty persuasively, that most arguments in favor of higher gas taxes are mistaken. They also argue, that if environmental damages or congestion are of concern then emissions taxes, user fees, and tolls are much more direct & effective solutions than a gasoline tax.

[Nick]

RE: Cato's new piece.

Road tolls more-cost effective at reducing congestion than a gas tax? - yup, likely.

And I understand their argument for taxing actual tailpipe emissions rather than gasoline inputs. But, until someone proposes a workable solution for measuring and taxing individual tailpipe emissions...