Posted on 01/15/2008 6:55:52 AM PST by Zakeet
Regulation: The new energy law contains stiff new fuel-efficiency standards for U.S. automakers. But make no mistake: What you got from Congress was a big tax hike. Just ask General Motors Vice Chairman Bob Lutz.
That's right. The CAFE standards embedded in the Energy Independence Act require fuel efficiency to jump to a fleet average 35 miles a gallon in 2020 from about 25 mpg now. That means you will soon be paying more — a lot more — to buy a car.
Maybe this sounds reasonable. To many, these new rules are long overdue. They'll help us cut our reliance on foreign oil, they say, while reducing global warming. Who could disagree with such noble goals?
The only problem is, based on what we know now, it'll cost automakers some $85 billion to comply. When all costs are factored in, other estimates put the total cost at about $18 billion a year.
Fine, say the populist politicians. Stick it to the automakers. But do they really think Ford and GM will pick up the tab? Of course not. It'll be you, as GM's Lutz made clear in comments Sunday.
"We've done even more research," Lutz said, "and (the cost per car of new CAFE standards is) going to be in the range of $4,000 to $10,000, with an average of about $6,000."
Let's put that in perspective. The average cost of an automobile in 2006 was $27,958, according to the Comerica Automotive Affordability Index. So our new energy bill is, in effect, going to be a 21.4% tax hike on the current car prices. Oh, didn't they tell you that?
There's more.
(Excerpt) Read more at ibdeditorials.com ...
Read the rest of the editorial if you want to simultaneously get an upset stomach and become angry.
McCain thinks it the greatest thing since sliced bread.
I think even without regulation, a lot of Americans will be clamoring for cheap, fuel efficient vehicles, even if it means driving a stripped-down econobox.
They learned nothing from the 70s.
“I think even without regulation, a lot of Americans will be clamoring for cheap, fuel efficient vehicles, even if it means driving a stripped-down econobox.”
Agreed. If gas ever went to $5/gallon, you better belief the market would respond.
But our leftists in Congress don’t like free market economies so.....
McCain is FOS.
As with everything the govt. does to “help” this too will backfire.
Come 2020, prepare to see a lot more gas guzzling 20-30 year old cars on the road polluting, leaking oil, dropping muffler all over the highways, etc, etc.
Recall the classic Paul Shanklin tune In a Yugo, made famous via Rush Limbaugh.
They’d make us drive pedal cars like when we were a kid if they could produce the same tax money they now garnish.
Personally, I prefer small, non-hybrid vehicles simply because I refuse to pay extra money for gas.
If they are clamoring for cheap, fuel efficient vehicles, the auto manufacturers would make them without an excessive regulation that impacts the entire line of vehicles. The market would provide an efficient solution without driving up all the prices of all the cars on the market.
There’s been a lot of these buzzing around with manufacturers plates in my area.
http://www.peugeot.co.uk/ppp/cgi-bin/ppkfcwebuk/ppplp1101_02.jsp?_strLCDV=1pb0a3&BV_SessionID=@@@@1327501013.1200410293@@@@&BV_EngineID=ccciadeddghjmimcefecfgmdfgodffj.0&_strModeHTML=1
We need a “Separation of State and Economy” Amendment.
Me. I looove my Honda S2000 two seat sports car. I even take the kids for rides in it. We don't even wear helmets or Kevlar while riding (please don't tell Huckabee or Bloomberg, OK??)
“They care about lost taxes if cars aren’t sold. My current truck is 10yrs old.”
We don’t own a vehicle that isn’t younger than 14 years. All are still going strong with just regular maintenance and a few brake and exhaust jobs over the years.
I’m with you. I’ll never buy new and will pay cash to a private seller if at all possible. I’ve owned ONE new car in 31 years of driving, and that one lasted me 13 years.
I’ll never understand the mentality that a car is a status symbol or a fashion statement. It’s transportation or a tool, in regard to our two trucks. *Shakes Head*
Bring it on, Mother Government. I thank God every day that he gave me the brains to outwit you at every turn, LOL!
Further, the Left states that we would be better off if we paid “European prices” for fuel. Gasoline today costs the equivalent of $7.50 per gallon.
Now consider this: when gasoline costs Americans $7.50 per gallon because we are totally self sufficient in energy because we are converting coal and oil shales to make gasoline and diesel fuels that is BAD.
When gasoline costs Americans $7.50 per gallon due to a $4.00 per gallon federal tax, that is GOOD.
Putting aside the economic changes that doubling gasoline prices imply, what really motivates people who think that having “European prices” is a desirable policy goal of the federal government?
The natural changes in the free market economics are not responsive enough to liberal whims and desires of social change.
You're assuming that they really are that stupid and are actually trying to fix things.
I think all they want is the appearance of trying to fix things, and the additional tax revenues which they can use to solidify their hold on their offices by bestowing entitlements and pet projects on voters.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.