General Motors Co. CEO Dan Akerson wants the federal gas tax boosted as much as $1 a gallon to nudge consumers toward more fuel-efficient cars...
A government-imposed tax hike, Akerson believes, will prompt more people to buy small cars and do more good for the environment than forcing automakers to comply with higher gas-mileage standards.
"There ought to be a discussion on the cost versus the benefits," he said. "What we are going to do is tax production here, and that will cost us jobs."
For the years 2017-25, federal officials are considering 3 percent to 6 percent annual fuel efficiency increases, or 47 mpg to 62 mpg. That could boost the cost of vehicles by up to $3,500.
"You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas," Akerson said.
"People will start buying more Cruzes and they will start buying less Suburbans."
With gas already over $4 a gallon in parts of the country, a higher gas tax is a hard sell.
Rebecca Lindland, an analyst with IHS Global Insight, said higher gas taxes in Europe did lead consumers to buy more fuel-efficient cars.
But she acknowledged that's virtually impossible to see in the United States.
"It's career suicide for a politician to call for raising gas taxes," Lindland said.
via detnews.com
In other words, if GM is mandated to meet tighter CAFE requirements, GM will pass the higher cost through to consumers and that will make GM look bad. If the government taxes gas, it's the government that looks bad and GM can come to the rescue saying "We can help you. Buy one of our fuel efficient cars."
The end result: Consumers pay more. Who initaties the higher cost for consumers is up for negotiation.
