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Technology Stocks : Intel Corporation (INTC)
INTC 36.34-0.1%3:59 PM EST

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To: John Carragher who wrote (182536)11/7/2005 5:25:46 PM
From: Road Walker  Read Replies (1) of 186894
 
re: People buying these big engines right now could care less about cost of gas. of course you will knock off mid income , married , suv's for family. But the single person who wants the big engine , lots of horse power is not going to be stopped by a tax. or those who can afford those type cars.

Yes, many folks will opt to pay the "gas guzzler tax" and many will opt for a more efficient vehicle. And those that pay the tax will supply the revenue for efficient vehicle tax credits. Say a $5K tax on an Escalade, and a $5K credit on any car that gets over 35 mpg. Net effect... a steady improvement in fleet efficiency... and lower consumption of gasoline. And of course the auto makers are going to respond to the growing market for more efficient cars by producing more efficient cars.

As a side issue, you might mandate that car makers put the epa mpg on the back of cars, similar to and next to the brand logo. Might embarrass some folks into efficiency.

John
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