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Jane Richey / April 18, 2012

Raising Fuel Tax by 25 Cents Per Year

Former Vice Chairman of General Motors Bob Lutz said he would raise taxes on gasoline to compel American consumers to buy more electric cars.

“If I were emperor of the United States, I would raise the fuel tax in the United States by 25 cents a gallon per year,” said Lutz during a panel discussion on energy independence co-sponsored by the Hudson Institute.

Lutz claimed an annual tax hike on fuel would create predictability in the auto market and consumers would be more inclined to buy electric cars.

He also called the 18 cents per gallon federal tax on fuel, “ridiculous,” because 18 cents a gallon is in his view too low, and lamented the political risk in the U.S. of advocating for higher taxes on fuel.

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Filed Under: Constitutionally Limited Goverment, Free Markets Tagged With: Bob Lutz, electric cars, fuel tax, General Motors

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