Skip to Content
Streetsblog Los Angeles home
Streetsblog Los Angeles home
Log In
DC Streetsblog

Can High-Speed Rail Reduce Air Travel and Highway Expansion?

Well, it’s unanimous – everyone agrees the country needs a significant hike in the gas tax. Everyone outside of Congress, that is. Last week, General Motors CEO Dan Akerson told The Detroit News that a higher gas tax would help solidify the market for more fuel-efficient cars.

false

Akerson told The Detroit News that, rather than have the government incrementally increase fuel efficiency standards over the next several years, "You know what I'd rather have them do — this will make my Republican friends puke — as gas is going to go down here now, we ought to just slap a 50-cent or a dollar tax on a gallon of gas."

"People will start buying more Cruzes and they will start buying less Suburbans," he said.

Akerson isn’t the first representative of a major U.S. automaker to come out in favor of a higher gas tax. Two years ago, as the automakers were being rescued from collapse by the U.S. government, Bill Ford, CEO of Ford, complained that demand shifted with gas prices.
"As a manufacturer, we don't like that," Ford said at a business conference. "Our ability to forecast has been just horrible," said Ford. "If gas prices are gyrating wildly, we have no idea whether we're planning right. We'd much rather have a fairly predictable level to shoot for in gas prices. That's why I think a gas tax would work for us."

Chrysler’s response to high gas prices in 2008 was quite the opposite – the company offered a guarantee of $3/gallon gas for three years for car buyers. Lee Iacocca championed a hike in the late eighties, before the last gas tax increase, but the company isn’t on record currently as supporting a raise.

The construction industry is a vocal supporter of an increase, since low revenues have hamstrung new development. Indeed, it’s hard to find anyone outside of Washington these days that doesn’t see the obvious need to raise the gas tax, which hasn’t been increased since 1993, when gas was just over a dollar a gallon.

Stay in touch

Sign up for our free newsletter

More from Streetsblog Los Angeles

Planning Department Releases Measure HLA Implementation “Standard Elements” Draft

The city is working to clarify exactly what minimum bus/bike/walk improvements are triggered by Measure HLA

February 5, 2025

Op-Ed: How Transit Agencies Are Tackling America’s Public Bathroom Crisis

Lack of public restrooms can be a barrier to using transit — and a devastating problem for those who have no choice but to ride. This company is trying to solve the problem.

February 4, 2025

Planning Continues on Metro E Line Eastside Extension Project

Given a funding shortfall, much of the Eastside E Line project work this year will be focused on federal environmental clearance, which would make the project eligible for federal funding

February 4, 2025

This Week in Livable Streets

Metro Eastside A Line extension meeting, Merced Greenway ride, Metro budget meeting, and more.

February 3, 2025
See all posts