Bill Ford calls for an increased gas tax
By now you've surely noticed that gas prices have stabilized at around $2 a gallon (or less, depending on location) in the United States. That's about half of what gas cost just about one year ago, which is both a blessing and a curse, depending on how you look at it. Add Bill Ford, Executive Chairman at the automaker that bears his name, to the list of those unhappy about cheap fuel. He says:
When gasoline went to $3.50 a gallon we saw a sea change in customer behavior. Now people are turning away from more fuel-efficient vehicles and taking the bigger vehicles. I've been talking for five years now about the need for a gas tax. We have to have some predictability on fuel pricing and that price signal has to be strong enough so customers will continue buying smaller, fuel-efficient cars.It's certainly not a popular view among many, but Ford's assertion that an artificial increase in the cost of fuel would force consumers into choosing more efficient automobiles is likely accurate. It would also make it much easier for automakers to plan future model launches, knowing that new car buyers would want to purchase a vehicle in two years that will save on their monthly fuel bills.
[Source: Green Wombat]
Reader Comments (Page 1 of 4)
mapoftazifosho 8:55AM (4/22/2009)
Do it. We need to balance this budget, in addition to the economic stability that this will create by making us LESS dependent on foreign oil. Aside from that, the oil corporations are one of the most evil entities ever. They resist change and progress...
"Despite a documented history of blowing their exorbitant profits on outlandish executive salaries and stock buybacks, and hoarding their bounty by avoiding technologies, policies and legislation that would protect the population and environment and lower fuel costs, Big Oil insists on transferring all of that responsibility on the auto companies."
- Jason Vines, (former) Chrysler PR
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John 10:37AM (4/22/2009)
Oh, Oil companies are evil. The auto exec's are all saints!! They're both out to screw everyone and America. GM, Ford & other could still have been selling big SUV's while making them fuel efficient.
Lad 1:44PM (4/22/2009)
Don't worry Mr. Ford! The price of gasoline will rise. Right now, the oil companies are able to control the price by controlling the supply side regardless of the demand. Remember the speculators had a large role in driving the gasoline price up to $4 as did the huge demand for oil on the world market. The speculators are under the microscope by the regulators and the American people are hanging on to their old cars and driving less because of the uncertain times.
Increasing any form of taxes while so many American people are out of work and the economy is in the toilet is not a good idea and is a form of manipulation ill-timed for the times.
Tohe 9:06AM (4/22/2009)
But there is an even higher political price to a gas tax.
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Lou Grinzo 9:15AM (4/22/2009)
I've been saying for years that we need a higher gasoline tax, and one with a built-in schedule of increases. That will let consumers buying a car today know that the tax will increase by, say, 25 cents/gallon every year.
A simple solution to the taxation problem is to refund nearly all of the money to people in rebates on their income taxes or reductions in the payroll tax. People who use very little gasoline will actually make money, funded by people who use a lot.
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GoodCheer 10:59AM (4/22/2009)
I'm with you 100%. This needs to happen yesterday.
Tohe 6:48PM (4/22/2009)
A progressive tax system makes a lot of sense. Enact it today, provide for a grace period of 2 years to allow the economy to recover. I think this, in concert with a good scraping program, could be very effective in the long term.
Ken 7:50PM (4/29/2009)
Lou,
People who use less gasoline will pay less for gas simply because they visit the pump less frequently.
Paul Rosenberger 4:52PM (5/04/2009)
Right on! This is exactly my thought also. Draconian as this may sound, it will actually stabilize the automobile economy. Everyone will know what is coming down the pike, both auto manufacturers and consumers. No more unpredictable swings in gas prices.
jharlan 9:23AM (4/22/2009)
That's right, raise taxes on the working poor, Bill. I have been a big Ford supporter. but I have changed my mind. Ford has come out with some fuel efficient cars and now they want the price of fuel raised to force people to buy them. Grinding your own Axe, Bill? People want and will buy more fuel efficient cars without heavy handed government action. These jackasses will advocate raising your taxes for a business advantage and that is abominable in these hard times.
You raise our fuel taxes and we will take it out of your hide at the next election. You elected officials need to learn to live within your income like the rest of us.
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Mike 10:37AM (4/22/2009)
JHarlan is right. Now that Ford has finally waken up that times are changing they need to force their cars on people to stay in business. Bill, you're an idiot. Accept your part in this automotive mess.
Aquariumsw 7:20PM (4/22/2009)
"""That's right, raise taxes on the working poor, Bill. I have been a big Ford supporter. but I have changed my mind. Ford has come out with some fuel efficient cars and now they want the price of fuel raised to force people to buy them."""
So uninformed...the poor can actually make money on a gas tax pla, since every taxpayer should get $500 to $800 tax refund to cover baseline fuel needs. If you really conserve, as you should, you might just pocket $800 courtesy of some snobby SUV driver. It pays to be conservative.
harlanx6 11:29PM (4/22/2009)
If they want to drive the right behavior they should offer incentives to buy more fuel efficient vehicles, not use it as an excuse to raise taxes. They are also going to try to raise fuel taxes now because people are driving less, and therefore paying less road tax. You people who advocate raising taxes on products always end up with a bunch of unintended consequences. You always know what's best for the rest of us, right?
S Barringer 11:35AM (4/22/2009)
I agree that we need a gas tax. Not a "fuel" tax, that would lead to lame-brained legislators misinterpreting the intent and taxing heating fuel, etc. too. Car fuel tax would be more specific. And, that tax should include trucks too, even though they haul our supplies. That truck tax should be assigned for the purpose of rebuilding the rail-lines so they can replace the trucks as supply movers.
People are driven by self-interest. That's a fact. (Alturuism? ROFL) And it 's a fact that people changed their behavior when gas prices went up. Now, legislators, get sensible and use this fact, for your country, not for the corporations.
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Ubermod 9:36AM (4/22/2009)
Exec:"We could build cars people want if we only knew what they wanted!"
Ford:"Or, we can make them need what we build."
While I agree there should be a change in fuel consumption (also type of fuel), having the government tax the people to make for them desire your vehicles more is the wrong view to take. Seems awfully self-centered to me.
Not knowing what Americans want seems to be the problem that the Big 3 have been struggling with. They've been insisting on telling everybody what they want instead of listening. Had Ford brought the Diesel Fiesta here, I'd have bought one in a second.
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Steve 9:52AM (4/22/2009)
That's right, raise taxes on the working poor by NOT adding a fuel tax. Last summer was an example of a fuel tax. The difference was 1. We were not able to plan for it and 2. Sent most of the "tax" revenue across the ocean.
A fuel tax implemented in stages would 1. allow people to prepare for increases over time. 2. keep oil demand stunted. 3. stop the volatile price spikes and ultimately keep prices relatively low 4. keep our money in our country instead of giving it to countries overseas.
Jharlan, Get a grip. Learn to understand the dynamics of imposing artificial demand dampening techniques to effect prices. Bill Ford's advocating for a fuel tax has little to do with generating income for the government or gaining an edge from a business standpoint. It does have a lot to do with keeping money in our country instead of letting other countries impose and collect the "tax".
To the Politicians: Please implement an additional 50 cent per gallon tax each of the next 5 years! This should not be a road tax though. It should go towards paying down the debt. Do it and you have my vote!
I drive a deisel vehicle that gets about 10 mpg. Last summer it cost over 50 cents per mile just for fuel. It was a 120 mile round trip daily. I only earn home about $1200 after expenses. Point is a $2.50 per gallon tax would greatly effect me in a very negative way but I still believe it is what should be done.
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Throwback 10:24AM (4/22/2009)
So only people who drive cars are responsible for paying down the debt? Why penalize people who already drive high mpg cars? Do you really think politicians who will get this windfall will only use it to pay down the debt? If such a scheme was implemented, most of the funds would be spent on new "initiatives. Why not have a sliding scale of tax credits based on the mpg of the cars? Start at 30 mpg combined and go up from there. It would mean more fuel effecient cars and no penalty for people who already drive gas sippers.
Tohe 11:18PM (4/22/2009)
@Throwback
Because that does not solve the problem.
Me 7:40AM (4/23/2009)
So why are you driving a 10 MPG vehicle? Buy yourself a Jetta Diesel and you will only have to fill up your 15 Gallon tank once a week!
PeterG 9:58AM (4/22/2009)
People are always on about all the great small high MPG cars in Europe. This is exactly the kind of policy that created them.
High gas taxes will convince enough people buy the minimum vehicle they need, rather than the maximum that will fit in their garage.
Higher fuel prices will also encourage alternative energy soruces, reduce consumption, reduce dependence of foreign oil suppliers.
It is just about the best policy discussed in decades, but no one will have the balls to do it, because half the electorate is populated by unreasoning troglodytes.
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