One way to prevent this is to raise the gas tax to $2-3 per gallon, making a gallon of gas cost at least $3.50. At this price, Ford and GM could competitively sell hybrids (even Toyota loses money on hybrids with gas at its current price). We could use the extra tax revenue to repair roads that badly need it (I was just in a state full of them). This would also discourage people from buying inefficient cars, and ensure the automakers that it was safe to pursue hybrids; that their research and development money would not go down the toilet if gas crashes in price again.
2008-12-28
Raise the gas tax now!
Thomas Friedman, always the smartest guy in the room, sees a pattern playing out again. With gas prices going down again, as they did in the 80s, the amount of Americans buying SUV's is going to increase, with the money they spend on gas going right into the pockets of those who fund terrorism.
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Good points except for taxing it that high. If we bought oil from non-terrorist countries and drilled for oil here in the US, that would work. I'm getting sick of all the taxes I pay.
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