Would raising the gas tax to $1 and establishing a 'gasoline price floor' provide market stability for auto dealers? Some dealers, including the nation's largest, say 'yes'. Economists agree. Politically impossible? Read on.
National Journal's energy and environment correspondent, Coral Davenport goes to "the heart of the Southern California car market" to speak with an auto dealer who supports a a more than 500-percent increase in the gas tax to $1 because it would bring "market certainty".
The fluctuating price of gasoline creates market uncertainty for dealers, meaning sales of SUVs and efficient compacts vary with the price of gas, according to the Morovia dealer.
"A growing number of car dealers advocate the same solution to the problem: raise the gasoline tax, enough to create a consistent, predictable demand for fuel-efficient cars and to force automakers to build gas-sippers that people want and can afford. One way to do this, say automakers, would be to create a new gasoline price floor -a point below which prices won't fall."
Not a new concept, Washington Post conservative columnist Charles Krauthammer wrote about it in 2004, as did University of CA energy expert Severin Borenstein (Planetizen, 2008).
Michael Jackson, chief executive officer of AutoNation, the world's biggest auto retailer, is an outspoken gas tax advocate. In April, he told CNBC: "At the end of the day, you would need a gas tax, increased over decades, to keep the consumer focused on conservation."
"Two of our biggest problems, as an economy, is our dependence on oil and our contribution to climate change. A gas tax gets at all of these neatly, elegantly, and efficiently," says James Sallee, an expert on energy and tax policy at the University of Chicago.
"We know clearly and convincingly that new-car purchases are responsive to price fluctuations. It sends a market signal, instead of having government regulations pick what we do", says Sallee.
"That idea, of course, is tantamount to jumping on a political hand grenade, which is why the politicians these economists advise haven't tried to do it.
The solution there could be a tax trade-off: raise the tax on gasoline but make an equivalent cut on payroll or income taxes."
Thanks to MTC-ABAG Library
FULL STORY: $1 Gas Tax? One Auto Dealer Says, ‘Yes, Please’

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Chicago’s Ghost Rails
Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

Amtrak Cutting Jobs, Funding to High-Speed Rail
The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

Ohio Forces Data Centers to Prepay for Power
Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

MARTA CEO Steps Down Amid Citizenship Concerns
MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant
A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Caltrans
City of Fort Worth
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie