Skip to comments.Former GM Vice Chairman: ‘I Would Raise the Fuel Tax 25 Cents a Gallon per Year’ (Lutz)
Posted on 04/18/2012 12:06:19 PM PDT by jazusamo
VIDEO at link
(CNSNews.com) - Former Vice Chairman of General Motors Bob Lutz said he would raise taxes on gasoline to compel American consumers to buy more electric cars.
If I were emperor of the United States, I would raise the fuel tax in the United States by 25 cents a gallon per year, said Lutz during a panel discussion on energy independence co-sponsored by the Hudson Institute.
So that people making a purchase decision, Wow its 4 dollars this year, $4.25 next year, $4.50 the year after that, you know what? We better buy a compact this time.
Lutz claimed an annual tax hike on fuel would create predictability in the auto market and consumers would be more inclined to buy electric cars.
He also called the 18 cents per gallon federal tax on fuel, ridiculous, because 18 cents a gallon is in his view too low, and lamented the political risk in the U.S. of advocating for higher taxes on fuel.
In the states, the political process is such that we cant use the market mechanism of fuel price to drive demand for these alternative fuel vehicles. So we leave taxation where it is, and then we have to find a somewhat artificial means to incent customers to look at these [electric] vehicles, he said.
According to Lutz, U.S. electric car production would not require subsidies if elected officials simply raise taxes on fuelsimilar to what is done in European countries. He cited the high amount of electric cars bought in Europe as a result of high gas prices.
Lutz said he doesnt like alternative fuel subsidies any better than anybody else but maintained they are necessary if elected officials continue to reject tax increases on fuel as a way to motivate more people to drive electric cars.
Its a roundabout way of getting at it, and it isnt totally free market, but itll have to suffice, because were not using the free market mechanism to get people to voluntarily restrict their use of gasoline. So we have to come in with an artificial substitute called a subsidy, he said.
Robert Lutz is former vice chairman of General Motors and has served in various capacities with Ford, BMW and Chrysler Corporation. Currently, he is a part time adviser at General Motors after being a senior adviser from April 2009-May 2010.
During 2009-2010, General Motors received $49.5 billion out of the approximately $100 billion in taxpayer funds that were given to the auto industry under the Troubled Asset Relief Program, otherwise known as TARP.
Last year, GM recorded its highest profit ever during the companys 103-year history.
The gut that lives down the sweet who can’t find a job would be willing to trade places with you and then you would have a clue as is what it takes to not have enough money for food let alone and additional $.25 cent of gas price increase.
How can a a-hloe like this moron be able to walk and heath at the same time?
Just one more Obama-loving General Motors A-hole. This jerk is so dumb he cannot even begin to understand just how much damage his proposal would do to the US economy. Plus, if the number of those under-performing electric vehicles ever became a substantial percentage of the total vehicles on the road, the huge increased need for electric power generation, plus the transmission requirements of that electric power would be near impossible to meet. That does not even address all of the Green freaks going absolutely bonkers at the thought of adding more generating stations.
I have owned one of my vehicles for almost 32 years.
That would make just the ADDITIONAL taxes now $8 more-—on top of state taxes & the actual cost & profit of the fuel.
FUBL. Over my DEAD body will I own a GM product.
Not selling enough of them thar Volts, Bobbie?
What a G-D shame that such a lowlife POS like him should possess such fine automobiles.
Wouldn’t it be easier just to pass a law mandating it and then shoot the people who refuse?
Each car costs $40,000 to build. The American taxpayer gave GM $60,000,000,000. That is 1.5 million cars.
GM should give 1.5 million Americans Chevy Volts and take the money out of their union workers benefits packages.
That’s a nice way of paying us back.
Is this correct? And does the profit include bailout money or is this real profit?
"In 2011 ExxonMobil made about $73 billion and paid about $31 billion in tax. That is a tax rate of greater than 40%; assumedly more than Warren Buffett's secretary. The much heralded GM made about $9 billion. General Motors not only did not pay any taxes on the income, they received a benefit of $110 million."
You need to sign up for a reading comprehension course.
I would GLADLY pay 25 cents per gallon more to drive, IF that money went to highways. What we’re doing now is entering a brave new world of paying 15 cents to $1.00 PER MILE to drive...simply because we won’t increase the gas tax to cover inflation.
Yep, but the IF is a big IF and the 25 cents per year will add up in a hurry. I realize this toll thing will be a huge rip though and will be increased when politicians have the need for more money, which is always.
“Yep, but the IF is a big IF and the 25 cents per year will add up in a hurry. “
Agree...it does have to be dedicated to highways, as part of the deal.
And if I were a customer I would not buy a GM from this Putz named Lutz.
Makes us even.
I think we need to start taking these idiots out and beating them to bloody pulp, then dumping them in the middle of the mohave and let them drawl to the nearest hospital. Perhaps we could make an impression on them finally for how little we care for them stealing our live blood from us.
At least two.
Agreed. That article is probably a few years old now, too - he may now own even more. BTW, did you see that next to last paragraph? Looking at that together with Lutz's comments at the time of his leaving GM (He supposedly wasn't interested in building cars for government regulators instead of the customers), I'm convinced that Lutz is now on the administration's payroll. Makes sense, in a way - pay the ex-GM guy to go out there and stir the pot, while the current GM management remains out of the line of fire.
Whenever I see statements like this, it makes me want to scream.
MONEY IS FUNGABLE!
Nothing peronal BobL, but I'm so sick and tired of people buying the big lies it makes me want to throw up on Obama.