Filed under: Car Buying, Trends, Government/Legal, Green
Ward's columnist wonders if Americans can handle the truth about gas taxes
People have always had something of an aversion to hard truths. Most Americans say they want their country to get off foreign oil or help the environment, but when it comes to the bottom line, they want cheap fuel. And when the prices on gas pumps start to dip, consumer interest in smaller more efficient vehicles tends to go out the window. Understandably, drivers everywhere tend to make vehicle purchasing decisions in large part based on fuel prices.
Ward's Auto World columnist Drew Winters notes that executives like Bob Lutz have long advocated that fossil fuel prices need to increase in order to make more efficient vehicles appeal to consumers. But with U.S. consumers' almost instinctual avoidance of taxation, it has been difficult for politicians to consider such measures. Instead, it would appear that most constituents want government to mandate both more fuel efficient cars (through mechanisms like CAFE) and cheap gas without impacting the cost of automobiles themselves.
Winters paraphrases The End of Oil author Paul Roberts, noting that "every major fuel shift in history – from wood to coal to oil – was driven primarily by market forces, specifically by competitive advantages of the new fuel over the old." Thus, part of the solution may simply to make the fossil fuels more expensive relative to other energy sources.
Unfortunately, Winters surmises, it appears that nobody can handle this truth.
[Source: Ward's Auto World | Photo: GoodGreentips.com]
Reader Comments (Page 1 of 5)
happy_penguin 7:16PM (12/27/2008)
I want the truth!
YOU CAN'T HANDLE THE TRUTH!
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Michael 11:03AM (12/28/2008)
Awesome movie.
iCameiSawiConquered 7:25PM (12/27/2008)
Typical American behavior: everyone wants their cake and eat it too.
Everyone wants a good police department, a working fir department, well paved roads with no pot holes, a good school to send your kids to with good teachers, a prompt and often garbage collection, clean water and air, and of course reducing oil consumption.
Yet when it comes time to actually pay for these things, it's those evil evil! taxes that no one wants to pay, and then throw a hissy fit when they get levied. Well which is it? We can live in a world where nothing is taxed and it is up to the solitrary individual to provide 100% of these things to themselves and their family or we live in a society where collectively we get these things done.
Oil independence and fuel efficient vehicles don't happen magically. If someone can honestly explain to me how to get someone to say choose a 30 mpg 4 cylinder small car instead of a 16 mpg V8 when gas costs $1.45 I'm all ears, but reality says you can't. Not when gas is this cheap. There is no incentive to change. There is an easy and effective way to change this, and yes it's that evil evil! word again: taxes. An 18 cent a gallon federal tax frozen in 1993 is a joke, as are the ridiculous SUV tax deductions and other perverse disincentives.
You want to push more fuel efficiency, end the oil addiction, and spur research and development into alternatives? Tax the use. If you want to get your V8 guzzler then it's your choice, you will simply pay more for your "fun."
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jay 7:39PM (12/27/2008)
I have to say I agree with you, but where I am from there are those who use trucks because they need them, we are out in the woods and simply put getting 100 mpg between charges just doesn't work. Everything is spread out. But nonetheless, there are many in my area and I'm sure in other areas where they need their v8 trucks, but cannot afford the gas. Many businesses that use heavy-duty trucks, are losing money from a terrible economy coupled with the fact they would need to spend even more money on gas, we leave them out to dry. Again it's a small argument, but it's a point to be made. I still believe in a gas tax.
Ian 7:49PM (12/27/2008)
"Yet when it comes time to actually pay for these things, it's those evil evil! taxes that no one wants to pay"
WTF ever dude. Where I live we typically approve increased taxes for services such as those your cite.
Way to stereotype.
OKC05SRT6 8:50PM (12/27/2008)
The purpose of taxation is to fund the proper Constitutional functions of government. It is not to modify behavior.
Reader 2:14AM (12/28/2008)
The problem you speak of goes both ways VeniVidiVici. People advocate for the destruction of corporations [through unions, taxation, nationalization, etc], but expect to reap the same benefits that a fully functioning business would produce [jobs, cheap products, industry/trade, etc]. So really the only lesson is that people are generally looters.
catfish 3:02AM (12/28/2008)
"every major fuel shift in history – from wood to coal to oil – was driven primarily by market forces, specifically by competitive advantages of the new fuel over the old."
what part of that did you not understand? MARKET FORCES drive changes in fuel, and you can't legislate market forces that don't exist without creating huge inefficiencies.
Furthermore, I do want all those things, but most importantly I want my government to stop wasting my money; why do all of those things cost 2x what they did a few years ago? look at the budget for nyc. (who is proposing a gas "fee"). Its more than double what it was 10 years ago. Ditto with California. The amount of waste and pork in government spending is incomprehensible unless you've seen it first hand, they literally just throw money away where no sensible business would.
miles 10:15AM (12/28/2008)
@ catfish
Didn't Brazil do just exactly that making an ethanol-based transport economy?
I agree completely with the rise in gas taxes, the problem is it's political suicide, thus no suprise that it doesn't get done. You want to discuss "market forces that don't exist without creating huge inefficiencies"? CAFE is a big dumb green joke. Raise the fuel tax like much of the rest of the world, and rational choices will follow -- just as they do now with gas that is cheaper than a bottle of water.
Polly Prissy Pants 7:27PM (12/27/2008)
Everyone who truly understands the situation is in favor of large gasoline taxes, unfortunately when the rubber hits the road people are far more concerned with what's best for them, not what's best for us. This is one example where the will of the people is keeping us from making the right decision.
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davesss 12:08AM (12/28/2008)
I want cheap gas, big cars, and low taxes. There are more of me than there are of you. We vote. We win. Period. What's right, wrong or indifferent doesn't matter.
Rufus 5:07AM (12/28/2008)
Curse that nasty "will of the people". It always gets in the way.
Rocketboy 9:07AM (12/28/2008)
The right decision is to use taxes and fees to modify behavior? Sorry, that does not fly in my world. I suppose you support the tax on non-diet soda as well?
jay 7:32PM (12/27/2008)
Here's the thing, YES, I want people to switch to more environmentally safe and hybrid cars, granted in rural areas hybrids do not make as much sense as urban areas, but lets forget that point right now. As much as I hate to say it, I would like to see a gas tax, theoretically it would lead to less and less sales of the useless SUV's and hey maybe even the tax money would go towards government plans that would focus on hybrid technologies or even environmental technologies. Here's the kicker, if the tax is super high, and lets say gas is back to 3.75 a gallon, what happens to most consumers, will they spend less money and weaken the economy more? I'd be interested to see how much less consumers would spend. This christmas, besides Amazon.com, was the worse christmas for retailers across the country, and the gas prices were low. I'm all for hybrids and a better environment, and we should be rebuilding our infrastructure, but what about those who can't really afford those high gas prices?
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Peter 7:08PM (12/28/2008)
There are numerous simple solutions to increasing the gas tax without hurting people's disposable income. 1 option is to offset the gas tax increase with a reduction in payroll tax.
Rocketboy 9:11AM (12/28/2008)
"but lets forget that point right now"
Yes, let's forget that what "I" wish to be done would seriously negatively impact people who are not doing anything wrong, by forcing them into alternatives that do not fit their needs in any way, shape, or form.
Sounds like a plan to me.
(Man, I bet anyone who lives in hurricane country would LOVE an electric car. Nothing beats a plug-in when trying to evacuate a city.)
Jay 6:45PM (12/28/2008)
First, your sarcasm is unwelcome. Second, If you read both of my posts, I UNDERSTAND the point and it is valid, that's why I brought it up in the first place. Third, Grow up.
Rocketboy 9:17AM (12/29/2008)
I need to grow up? You're the one advocating TAXING people to change their behavior.
Jay 11:29AM (12/29/2008)
I would rather have no gas tax, but as of right now, there is no other option. The shock over the summer was just that a shock, it will come back again and stay and that will not be good. Hybrid and electric technology, NEED to be refined. As others have pointed, it's really not that economically viable right now. Once it is, consumers will shift towards them. You wouldn't happen to have the key to hybrid and electric technology would you? As corny as it sounds, this is our new frontier, we need to use renewable energy, "Clean coal" even though it doesn't exist yet, and start getting off oil. Why? while yea it helps mother nature, but more importantly, we rely less on the rest of the world. We criticize other countries for their behaviors except for Saudi Arabia because they supply our oil.
Oh and the speedracer movie sucked.
Rocketboy 3:12PM (12/29/2008)
"Oh and the speedracer movie sucked."
Besides the fact that it did, you felt the need to say this, and still believe that I need to grow up?