Higher Gas Tax = Less Commerce

Gas 2.0: ‘GM’s Bob Lutz Says Higher Gas Tax Would Help’

Lutz doesn’t even like hybrids, but the world certainly seems to with hybrid sales ratcheting up in 2009. The problem is, if gas prices stay too low, people aren’t going to buy hybrids or fuel efficient vehicles if they have other options. By ratcheting up the gas tax and keeping petrol artificially high, it would help automakers sell the fuel efficient cars the government is mandating they build. 35 MPG by 2020 is a tall but not unreachable order, if you remake your lineup with enough small cars and hybrids to offset bruisers like the Camaro and Cadillac CTS-V.

According to CNN, Lutz said Monday at the Detroit Auto Show that ”If the rise in gasoline prices is gradual, I think that all of us in the industry would frankly welcome that, because there is nothing more illogical than forcing fuel-saving technology when gasoline is extremely cheap.” And well, he is right.

First of all, any about-face done by Bob Lutz can be explained by simply looking at who is signing his paycheck.  This administration wants higher taxes, so Lutz must be open to them too.

Secondly, higher gas taxes will only harm those of us in the middle class who Barack Obama repeatedly assured during his campaign would be immune from paying even an extra dime in taxes.  Higher gas prices means less disposable income for families who have disposable income to begin with.  Higher gas prices means an increased cost of doing business for businesses large and small.  It means higher food prices in the supermarket, increased fees for air travel, and the increased cost of new vehicles made to accommodate the changing needs of the American public.

Liberals don’t understand unintended consequences.  And if they do, they generally don’t care.  It’s just a shame that, in this case, they got Bob Lutz to go along with it.

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Comments

  1. Chuck says:

    Are Right Wingers Really so Simple Minded?

    Your joking right? Do you actually think that ANY change in Lutz’s thinking can be explained by who is signing his paycheck? Is this what they teach in law school? Your logic is rather poor.

    Chuck

  2. bowiser says:

    Yes, Chuck, Jeff is right. There is one very true Czech proverb: “Who’s bread you eat, that person’s song you sing” (Koho chleba jidas, toho pisen zpivas — in Czech language).

  3. chuck says:

    Thank you Bowiser. We have a very true expression in the United States (some people might even label it as a “proverb”): “Crap in…crap out.”

  4. Depends says:

    Chuck knows a lot about that product (7:20), he spews a lot of it in here.

  5. gene logan says:

    The cars don’t cost that much….it is the top heavy fees on labor contracts, and pensions for life that make them expensive. So let’s screw the people one more time right – that’s easy….raise gas in an economy that is being crushed with taxes already!

    Until GM realizes that they will never again compete equally with those companies that have better machines, and reasonable labor agreements they will always look to the taxpayer as the solution. So again why is it that Ford, Toyota and everyone else is blowing them away now?

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