Transportation | June 22, 2007 |
Fuel Efficiency Bill Moves Forward
If it passes the House and does not get vetoed by the President, the energy bill will force the auto makers to stop pretending that cars can't be built that are safe and fuel efficient (just as Europeans).
Congress' work is far from done though, as a few more changes should be made this year to make our transportation system more sustainable while keeping costs within reason. First, revoke the tax breaks that oil companies get on refining and exploration and use some of the money for basic research for alternative fuels and use the rest to pay down the deficit.
We should also end the tax loophole that allows the largest SUVs from being written off and from avoiding the gas guzzler surcharge. Also, the taxes on new vehicles should be rewritten so that more fuel efficient vehicles in each segment are less costly to buy while less fuel efficient are more expensive.
We should not selectively give tax breaks to only hybrid vehicles but should endorse diesel vehicles or traditional powertrains that are at the head of the fuel economy class. Detroit has been whining that fuel efficiency is too expensive to implement, and this would take away from that argument.
The federal gas tax should also be increased, and (just as with income taxes), each person should get a minimum tax credit so that people who drive less or not at all would be impacted less than those who drive more, although driving for business reason should still be tax deductible. The most fuel efficient forms of transportation (rail, bus, etc.) should receive a tax break.


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