May 30, 2005
Taxing Gas Guzzlers?
The headline from the UK reads "Owners of gas-guzzling cars to be hit by five-fold tax increase." The proposed tax would rise from 150 pounds a year to 900. The proposal is aimed at attacking the production of greenhouse gases, but the some of the "gas guzzlers" on the list would shock those in the U.S.
Five cars facing £900 a year in road taxVW Sharan 2.0S - MPG: 29.1 - CO2 emissions: 230gm per km
Range Rover Sport 4.4 V8 - MPG: 18.9 - CO2 emissions: 352gm per km
Ford Galaxy 2.3LX - MPG: 28 - CO2 emissions: 242gm per km
Volvo V70 2.4SE - MPG: 30.7 - CO2 emissions: 220gm per km
Mercedes E240 Classic - MPG: 27.4 - CO2 emissions: 247gm per km
Given that many people I talk to think that 20 miles per gallon is "good" gas mileage, with the exception of the Range Rover, all of the other four sample cars listed get over 27 mpg. Gas guzzlers indeed!
The strategy of the tax is to force automakers to make higher mileage, less polluting, vehicles. Given the U.S. strategy to do exactly the opposite, then there may be a business "opportunity" in importing the "low efficiency" vehicles from the UK to the U.S.
Posted by rowan at May 30, 2005 7:17 AM | TrackBack | [eMail this article!] |I'd rather see the tax on the gas itself than on the cars. But we somehow have to force the market to acknowledge the true cost of gas if we expect to have alternate energy sources developed, or fuel-efficient vehicles.
I'm not pro-tax in general, but I'm not pro-subsidy either, and presently, gas is subsidized in that its price doesn't include health and environmental effects, nor the military expenses involved.
Posted by: AbbaGav at June 1, 2005 1:34 PMExcellent point as it relates to the hidden costs of fuel.....dead people!
Posted by: bill hooked at June 3, 2005 9:12 AM