The Post-Dispatch, which never saw a problem that couldn’t be solved with more government, takes on the President for not raising light truck CAFE standards enough
Not only are the mileage standards not as high as they could be, but they also exclude popular styles such as pickup trucks. Worse, the new standards exempt light trucks from the so-called gas-guzzler tax, which is imposed on vehicles that fail to meet mileage standards. Buyers of some models of cars have to pay the tax even though their cars get better mileage than the light trucks that were exempted. That could encourage truck sales at the expense of more fuel-efficient cars.
The President’s plan raises the standards from 22.2 mpg to 24 mpg over four years. According to the Congressional Budget Office, an increase in CAFE standards of 3.8 mpg would cost the US economy $3.6 billion per year. You won’t, however, see any discussion of cost in the Post’s editorial. Apparently, we just pick the money from the money tree.
The market is already able to deal with fuel economy, if dealing with fuel economy is necessary. Rising gas prices are likely to reduce demand for gas guzzlers. If consumers demand more economical choices, manufacturers will provide them. Government mandates and new taxes are not the answer.
