Environmentalists Eye Gas Guzzlers

Nearly $10.2 billion dollars in federal taxes were lost because of a law that exempts light-duty trucks, including SUVs, from fuel-efficiency standards, according to a study released by Friends of the Earth. A 1978 law to encourage the production of fuel-efficient vehicles levied a tax on auto manufacturers for each passenger car that gets less than 22.5 miles per gallon, with light-duty trucks in another category. Today, with SUV purchases comprising almost half of auto sales, environmentalists assert that these exemptions are bad for the environment and give unfair tax advantages. Industry officials argue that the study inflated estimates of the potential taxes.

Thanks to California 2000 Project