Cars, trucks and more

A gas tax now inevitable

A gas tax is an idea that has been floated around this blog many times over the last few years. My gas tax - really an oil tax - was always a way to help fund credits for more fuel efficient vehicles. Likewise, the tax helps drive investment in non-oil fuels and technologies, while also changing consumer behavior.

Lately, the drumbeat behind a new gas tax has been increasing. MotorTrend, the LATimes, and the New York Times, for instance, have each covered the idea in the last few days.

New gas taxes are coming, but they won’t be used to provide incentives for hybrid cars and other fuel efficient technologies..

Since gas tax revenue helps fund much transportation infrastructure throughout the US, and US drivers have been driving less, already there is a huge budget shortfall. Even worse, before Americans started driving less, most in Congress believed that current gas taxes were not sufficient, which helps explain America’s dilapidated infrastructure. Thus, if Americans continue to drive less, gas taxes are an absolute necessity.

Oddly enough, higher gas taxes will probably lead to even less driving, which will require even greater taxes, while pushing Americans to more fuel efficient, but less profitable, vehicles.

Thus, can US automakers survive such a reality without far more massive cuts than already expected, and without many, many tens of billions more in US aid? Likewise, can America be a real technological leader in the world if we continue to strive for the cheapest gas possible regardless of any other costs?

Labels: gas tax

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