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| Auto and truck sales at two big U.S. automakers have hit the breaks. CNN's Andy Serwer reports. (October 4) |
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NEW YORK (CNN/Money) -
The chief executive of the nation's largest car dealer has come down in favor a tax increase on gasoline, calling it long overdue.
Gradually hiking gasoline taxes will create the demand for greater fuel efficiency, Mike Jackson, CEO of AutoNation, commented in Automotive News.
"The truth of the matter is: If you want people to smoke less, you tax cigarettes. If you want them to drink less, you tax alcohol. Guess what you should do if you want them to consume less gasoline? That's right: Tax gasoline," Jackson said in the commentary.
With gas prices rising above $3 a gallon, consumers have been more conscientious about their gas use. But, Jackson said, prices need to reach $6 a gallon to have the same effect on consumer behavior that they did when they reached their peaks in the 1970s and 1980s.
In the report, he proposes a gradual increase of 10 cents a gallon a year on the federal tax on gas, which has been unchanged at 18 cents a gallon for more than a decade.
The goal of the proposal is not to raise taxes but to change the consumer mindset, he argues. Critics argue that raising the price of gas would put a disproportionate burden on the poor, but Jackson proposes an annual energy tax credit for those whose incomes are below a certain level.
"Since we all agree that America's addiction to oil is an issue of national security, we need an energy policy that encourages conservation," he said.
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Americans are getting strangled at the pump. Click here.
Gas prices put the brakes on auto sales. Click here.
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