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Old 05-11-2009, 01:13 PM   #5 (permalink)
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Join Date: Dec 2007
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1999 Saturn SW2 - '99 Saturn SW2 Wagon
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(I like all the posts I have read)

I voted #2. We see efficient vehicles in Europe and other countries, and their fuel taxes are through the roof. We also see tax breaks for small cars in Japan, like the Kei Cars. In the current economic climate, I don't know if I would institute them right now. I have always imagined introducing a gradual gas-tax increase, i.e. a "penny-a-month" for at least 4 years (one presidential term). This would in theory allow time for auto manufacturers to respond. The idea is that you know what's coming with a guaranteed timetable. Once in place, the tax increase could also serve as a price buffer. If fuel prices increase, the tax could lower to "absorb" the increase, at least to a degree. This would keep the price artificially(?) high but stable, thereby incentivising people to choose higher-MPG cars.


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