Skip to Content
Streetsblog New York City home
Streetsblog New York City home
Log In
Gas Tax

GM CEO: “We Ought to Just Slap a Dollar Tax on a Gallon of Gas”

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 New York City

Beach Reading: Zohran Mamdani’s Answers to Streetsblog’s Mayoral Candidate Survey

Spend the holiday weekend with Zohran Mamdani's answers to Streetsblog's mayoral candidate questionnaire.

July 4, 2025

Friday Video: Why NYC Needs ‘Low-Traffic Neighborhoods’

London's Church Street, like so many of our business corridors, was choking on cars — until the advent of the low-traffic neighborhood.

July 4, 2025

Friday’s Headlines: E-Bikes in Parks … Permanently Edition

The Parks Department will permanently allow e-bikes in city parks following a two-year pilot. Plus more news.

July 4, 2025

Anti-Miracle On 34th Street: Adams Administration Pauses Work On 34th Street Busway

The highly-anticipated 34th Street busway may not happen under Mayor Adams after all, sources said.

July 3, 2025

Manhattan DA Says Alleged Central Park Hit-and-Run Cyclist Didn’t Flee, Drops Charges

Prosecutors said the 30-year-old cyclist "remained on the scene for about 45 minutes after the crash and waited for paramedics to arrive to treat the injured person."

Sean Duffy’s ‘Great America Road Trip’ Wants You to Drive to Central Park

Sean Duffy's "Great American Road Trip" encourages Americans to drive to sites in the most transit-rich and car-choked parts of the country.

July 3, 2025
See all posts