Ever notice how this administration is in favor of market forces unless it inconveniences them directly?

For example, the Kansas farmer who wants to test all his cattle for BSE so he can sell to Japan is being thwarted by the Department of Agriculture.

Bidding on governmnet contracts is required unless Administration buddies can supply said services for extortionate amounts.

Corrupt.

Scorpio
Eccentricity

There's no such thing as a perfectly free market or whatever, but every time you use public policy to change the shape of the market, it costs someone something. Detroit's support of the gas tax makes sure that in the event the government enforces fuel conservation, it's not Detroit that pays. It's you the consumer who pays. This may lead you to be willing to foot the bill for the development and introduction of fuel-efficient vehicles, but unlike government-enforced efficiency standards, such a turn of events allows carmakers to recoup their investment into fuel efficiency, rather than having to write it off as a sunk cost of doing business.

It may be true that a gas tax is more effective than efficiency standards, but that's not why carmakers support it.

Gas taxes are both more efficient from an economic perspective and considerably regressive, which is of course why Kerry's proposal would have been offset by a cut in payroll taxes.

Why not, instead of CAFE, simply tax car sales on the basis of fuel economy? This is starting to happen with tax credits for hybrids, but why not also increase taxes on Hummers and SUVs? Sure, Detroit would still pass the taxes directly onto consumers, but at least the consumers would be paying for their inefficient vehicles up front, and low-income consumers could simply buy more efficient cars. And Detroit would be pushed into making more efficient cars, because people would be aware of the higher costs at the point of sale, and would gravitate toward greater fuel economy.

--marco

Sheesh, Nathan, thinking of running for office yourself and practicing your quoting-out-of-context? Neither of those executives endorsed an increased gas tax; they merely prefer it to raising CAFE.