General Car Chat Talk about cars in general. All makes and models - strictly car discussion.

Higher gas taxes better strategy than CAFE to save GM

Thread Tools
 
Old Jul 6, 2009 | 04:38 PM
  #1 (permalink)  
KrazyRider83's Avatar
Thread Starter
Fawkin Skittles
 
Joined: Jul 2006
Posts: 952
Likes: 0
Default Higher gas taxes better strategy than CAFE to save GM

Ford Executive Chairman Bill Ford and AutoNation CEO Mike Jackson were just two voices that spoke out in favor of a higher gas tax earlier this year. While we took the Cato Institute's Alan Reynolds to task for muddying the waters of the "Toyota-licensed hybrid Fusion", there's reason to look deeper at his argument (published in The Wall Street Journal) which maintains that a higher gas tax isn't just a good way to encourage sensible car purchases, it also stands to be helpful in saving troubled domestic automakers like General Motors. Reynolds writes:

The federal fuel tax is highest on the most efficient fuel (diesel) and below zero on the least efficient fuel (ethanol). Cars get about 30% better mileage on diesel than on gasoline, and cars running mainly on gasoline get about 30% better mileage than they would using 85% ethanol.

To stop distorting consumer choices, simply apply the same 24-cent-a-gallon federal tax to gasoline and ethanol as we do to diesel. This would add funds to the depleted federal highway trust. More importantly, it would remove an irrational tax penalty on buying diesel-powered cars -- arguably the most cost-effective way to improve mileage without reducing car size or performance.

Since GM, already on the government dole, sells (proportionally) so many large vehicles, it will need to sell more smaller or diesel-powered vehicles to offset its truck fleet and to meet upcoming CAFE standards. Reynolds doesn't think CAFE is a good idea, and claims there's a better way to make sure GM survives. Reynolds says that a higher gas tax would allow the Detroit automaker to keep building the cars it builds best ("midsize and large sedans, sports cars, pickup trucks and SUVs"). Only by upping the gas tax and totally scrapping CAFE, Reynolds says, will GM not be forced to take even more money to survive – and to pay the CAFE fines it's sure to acquire. Doing so would also allow The General to not waste "more taxpayer money on 'retooling' to produce unwanted and unprofitable subcompacts and electric cars."
WSJ Column: Higher gas taxes better strategy than CAFE to save GM
__________________
04 Neon SRT - (rebuild time)
03 B5.5 Passat Wagon 1.8T

Originally Posted by efficientkiller
none of this really matters at the end of the day...if you really want to know, the true answer is found in research, why post a ignorant thread & call it a debate? this is exactly why TR gets the critizism it does...
Reply
Old Jul 7, 2009 | 06:17 AM
  #2 (permalink)  
homemade wrx's Avatar
Registered User
 
Joined: Apr 2006
Posts: 811
Likes: 0
Default

very interesting approach and its much more sensible since there is a need for trucks.

I'm just glad diesel prices have already dropped to about the price of regular gas where I am. That fact that is was at one time $0.80/gallon more than premium was rediculous...its like was Busch beer is to Budweiser. The left over crap (not that Bud is good ).
__________________
"Racing is life. Anything before or after is just waiting." -Steve McQueen
http://www.timeattackforums.com/foru...referrerid=218
Reply
Old Jul 7, 2009 | 07:32 AM
  #3 (permalink)  
John's Avatar
lol @ tampa
 
Joined: Jun 2000
Posts: 41,257
Likes: 0
Default

What a load of crap. They want to tax CONSUMERS to continue to pay for a corporate mess? The only part I agreed with was lowering the tax on diesel fuel, the rest of this article has a lot of bad ideas
__________________
2008 AW 335xi coupe - Dinan stage 2 - DCI - Dinan axle back

|Full color business cards||flyers||postcards||more|
Reply
Old Jul 7, 2009 | 08:17 AM
  #4 (permalink)  
redcoats1976's Avatar
Registered User
 
Joined: Jul 2007
Posts: 583
Likes: 0
Default

well,lets face it,the government is out of money now,borrowing left and right.any tax they can levy on us now is going to look good to them along with more redlight cameras,speeding fines,etc.
Reply
Old Jul 7, 2009 | 08:54 AM
  #5 (permalink)  
chi town brat's Avatar
! Ne shab'rud'ni !
 
Joined: Jun 2002
Posts: 11,030
Likes: 0
Default

Originally Posted by John
What a load of crap. They want to tax CONSUMERS to continue to pay for a corporate mess? The only part I agreed with was lowering the tax on diesel fuel, the rest of this article has a lot of bad ideas
agreed.
__________________
if you can only race me in a straight line then whats the point ...91 SMF SCCA

http://www.flickr.com/photos/8341770@N07/5601083432/http://www.flickr.com/photos/8341770@N07/5601083432/ by http://www.flickr.com/people/8341770@N07/, on Flickr
TR "Old Skool EF" Member #017 chi town brat TR "eg6" crew #6

I see people out there spending money on the car to improve it … If you spend half that effort just working on your driving skills, making you and the car work together as a team, then you’ll go faster – period. To make the car go a second faster on the track takes a lot more energy and money than making yourself drive it one second faster.
the late Tom Thrash SCCA Solo E Production
Reply
Old Jul 7, 2009 | 09:15 AM
  #6 (permalink)  
plazma's Avatar
Registered User
 
Joined: Jan 2004
Posts: 1,895
Likes: 0
Default

I thought Obama said no new taxes. He listed like 3 different taxes and then said any tax.
__________________
https://www.tamparacing.com/forums/signaturepics/sigpic17840_1.gif

My Project
Reply
Old Jul 7, 2009 | 09:23 AM
  #7 (permalink)  
burgy240's Avatar
Offset-----Less is MORE!!
 
Joined: Jan 2004
Posts: 7,160
Likes: 0
Default

^ Obama made lots of campaign promises that he hasn't and won't keep....but if people really thought he was going to anyway, they were fooled from the start.


Yes please lets put in a system that allows them to KEEP producing the same bullshit they have and not change their focus.....I mean it isn't THEIR fault that they are in financial trouble
__________________
Looking to buy or sell Real Estate, give me a call.
http://liberty-vip.com Flush ≠ VIP. Spread the word in 2012
Reply
Old Jul 8, 2009 | 10:28 AM
  #8 (permalink)  
homemade wrx's Avatar
Registered User
 
Joined: Apr 2006
Posts: 811
Likes: 0
Default

Originally Posted by plazma
I thought Obama said no new taxes. He listed like 3 different taxes and then said any tax.


I'm just glad I wasn't an idiot that believed every unbelievable lie (goal/promise) he gave to get his non-experienced ass elected...yeah, Peter Pan for president



I will agree that raising the taxes isn't quite fair but lowering the diesel tax will help people hop to a more fuel efficient setup.
__________________
"Racing is life. Anything before or after is just waiting." -Steve McQueen
http://www.timeattackforums.com/foru...referrerid=218
Reply
Old Jul 9, 2009 | 08:43 AM
  #9 (permalink)  
chi town brat's Avatar
! Ne shab'rud'ni !
 
Joined: Jun 2002
Posts: 11,030
Likes: 0
Default

Originally Posted by plazma
I thought Obama said no new taxes. He listed like 3 different taxes and then said any tax.
ego boy said it which meant it had to be true . after all it was in the media . not . and damn near impossible not to raise or create new taxes

the rich can't pay for everything in this country . the poor may think that but its just not true .

ego boy considers incomes of individuals of over $200k a year and $250k a year for married to be the rich in this country. i don't know where exactly he gets his lesson of how that makes one rich because in reality its not when you take away all the taxes and other financial burdens that come along with making that much income

wait ... didn't ego boy grow up poor? well there is your answer. guess he is getting his new lesson as well.

inflation in a steady and growing market helps us advance our economy and our lives. when you jump ahead and blow bubbles until they pop you get where we are today.
__________________
if you can only race me in a straight line then whats the point ...91 SMF SCCA

http://www.flickr.com/photos/8341770@N07/5601083432/http://www.flickr.com/photos/8341770@N07/5601083432/ by http://www.flickr.com/people/8341770@N07/, on Flickr
TR "Old Skool EF" Member #017 chi town brat TR "eg6" crew #6

I see people out there spending money on the car to improve it … If you spend half that effort just working on your driving skills, making you and the car work together as a team, then you’ll go faster – period. To make the car go a second faster on the track takes a lot more energy and money than making yourself drive it one second faster.
the late Tom Thrash SCCA Solo E Production
Reply
Old Jul 10, 2009 | 11:25 AM
  #10 (permalink)  
Empire's Avatar
buildin' it
 
Joined: Aug 2006
Posts: 4,565
Likes: 0
Default

that is the dumbest, most terrifying idea to save GM I've heard as of yet. Sure, when you fuck with the fuel prices people are going to buy differently when they go to buy a new car. The problem is, people aren't buying new cars. Which is what has caused GM"s problem in the first place. I won't be buying a new car for a while. I'll be buying an early 2000 bmw for a family car. My next car for me will be either a 300zx or might even go the sport bike route. To replace the bmw in a year or two, I'll be shopping around for a used charger srt8. Assuming i can afford the monthly gas expense. A year ago, I would have considered buying a new car. Probably that new VW desiel that gets something like 50 mpg. but hey, that still doens't help GM. Maybe if GM didn't make so many crappy cars and try to make so many different kinds of crappy cars, they wouldn't be in such a mess. But someone would have had to notice that years ago when the company started to fall apart. Now you want tax payers to go in and fix a problem corporate tycoos created. Its bad enough we have had to spend tax payer dollars on failed bail outs, If this tax goes through, and it doesn't work, what next? a tax on people driving a car that is older than 3 years. That'll force people to buy new cars, right? But that still doesn't put enough money in people's pockets to buy a new car, so everyone driving a 10, 15, hell, 20 year old car out of neccessity will either pay the tax, or not drive. With the way things are, and the way things are going, I would give up driving before paying a tax just because I can't afford a new car. So that tax won't fix the problem, but since the governement owns GM and will probably own all of it at that point, what do they do next, put a tax on anyone buying a car that isn't GM. We'll double the tax on cars that are imported and/or made out of the country. So Ford will be in trouble considering most of their cars are made outside the US. or at least a considerable amount of the parts are. But hey, the government owns GM, why not buy controling power of ford too. That'll give the people more choice in the cars we are forcing them to buy.....
sounds kinda like the way they do it in Japan... and we all know how that Democrocy works...
Reply



All times are GMT -8. The time now is 11:15 PM.