Fortune Magazine's Martin Sloan is interviewed on Marketplace on why he thinks it would be good for Detroit, and America, to have a higher gas tax. At the same time, he has advice to Congress as to what they should do with fuel-efficiency standards.
"The national average (gas price) is now $2.10 and 16 states have gas under $2." In this radio interview, Marketplace's Scott Jagow interviews Fortune Magazine's Allan Sloan about his idea to raise the gas tax.
Sloan would like to see gas taxes raised so gas sells @ $3.25/gallon. While he sees sustained, higher gas prices as key to creating a market for the greener vehicles that Congress wants Detroit to produce, he also scoffs at using fuel efficiency standards to achieve that goal.
"Jagow: Do you really think that people will go back to their gas-guzzling ways considering what else is going on in this economy?
Sloan: People will absolutely go back to their gas-guzzling ways if the price of gas stays at $2 or goes even lower -- of course they will. And we'll be at the mercy of events all over again, and I don't think that's any way to run a country.
Jagow: And how do you think this (gas tax) would benefit -- if it would -- the American car makers?
Sloan: Because if we're gonna get people to buy fuel-efficient or alternate energy cars, you don't do it when gas prices start at $2... if these companies are still alive, and we got rid of these what I consider idiotic rules about average fuel economy. . . (continues)"
Read the full story: Why not tax gas while it's cheaper?
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