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As much as I hate to admit this, raising taxes on gasoline is in many ways a better alternative than Federally mandated MPGs. Follow along if you will.
Raising taxes slowly and progressively accomplishes the goal of reducing consumption and allows consumers to purchase vehicles that fit their lifestyle and budget. Vehicle manufacturers are free to produce what they want without restriction to the extent that the market requests it. 700 hp ZL1 in 2015? Sure if you don't mind paying for the gas.
Federally mandated MPGs, while in theory also reducing consumption in a similar manner, have historically just increased consumption as consumers just drive more given that they can go further on a tank of gas. Urban sprawl is alive and well my friends. Furthermore, it forces the manufacturers to make vehicles we don't want to buy. I'm sure the Sonic is a great car for its segment, but it will never appeal to me. 700 hp ZL1 in 2015? Only if it is electric.
One other potential benefit of an increased tax is that the additional funds could be appropriated to rebuilding our severely deficient infrastructure.
Now before you all crucify me, I'm all for the free market, capitalism, low taxes and small government. My point here is simply that the government is going to ram this down our throats one way or the other (1. increased taxes or 2. mandatory MPGs). If I have to choose, and make no mistake we will, I'm picking increased taxes. Ouch, that hurt to say.
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