We were all shocked when we learned of the GM CEO gas tax proposal a few days back. We have to wonder why Dan Akerson from General Motors is getting involved in politics – maybe the company should worry about themselves and why they needed to be bailed by the taxpayer before trying to fleece them again, as well as to help increase car loans.
Akerson believes that if the government were to raise the tax on gas by a dollar a gallon, it will force people to stop using their vehicles as much. Now, we can see why he would propose such a thing, but we are a long way from the idea working. Being forced to pay more tax on gas will not reduce the number of vehicles on the road, all it will do is anger drivers.
Take the UK for instants, they pay just over $10 for a gallon of fuel and almost 80 percent of that is tax. They also have a congestion charge in London, so drivers have to pay £10 per day to drive into the city. Now we have not really seen a huge drop in the amount of cars on the road, they just seem to pay up.
Having said that, London does have a great transportation system, so those drivers who do not wish to pay the high gas prices or congestion charge can use public transport. However, this will not work in the U.S. as the country is so vast and in some places public transport is not that great.
The other issue here is the fact that the alternative fuel cars are just not there yet. OK, so we know that we have hybrid cars and electric vehicles, but they are a long way off from offering a practical solution. The idea of a car is not just commenting to work, which is the only real purpose of the Nissan Leaf for example.
Having said that, if you do want to save fuel then the best way at the moment is with the likes of the Toyota Prius or other hybrid models. The issue here is that this requires money, something that is hard to come by at the moment. This would mean that the average American driver would have to get a car loan to pay for the new vehicle. Now we are not that great at math, but it would take years to even see a return in your investment – if ever.
To conclude the only people who would benefit from a gas tax hike would the U.S. government, carmakers like GM and car loan companies – where does the environment figure in all this?
Do you agree with a GM’s gas tax proposal?
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