Wednesday, March 18, 2009

GM CEO supports gas tax to restore $4 a gallon gasoline price

David M. Dickson has a provocative story in the Wednesday March 18 Washington Times, reporting that General Motors CEO Rick Waggoner now advocates a stiff federal gasoline tax to boost the everyday price of gasoline to $4 a gallon. In some countries in Europe it’s $8 (when I rented a car in France in 1999, it was about $6 a gallon for diesel). Presumably his tax would vary and go down when the price of oil raises so that the total cost stays constant.

Waggoner believes that the tax would incentivize Americans to buy fuel-efficient and hybrid cars. Nevertheless, credit problems, and financing for unemployed or retirees dependent on social security would become obvious problems with such a plan. So would the burden on those living in rural areas and driving long distances. McCain had talked about that during the presidential debates.

The story, “Gas tax hike looks good to GM chief” is here.

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