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

Analysis: Residential Parking Permits Would Be Bad for City Streets

Congestion pricing isn't driving more people to park Uptown — and even if it did, "hunting licenses" for parking spots wouldn't help.

February 18, 2025

Too Much Illegal Parking Prompts Community Board to Reject New Housing

Even after the city greatly reduced parking mandates in the City of Yes initiative, parking is still at the center of many debates about new housing.

February 18, 2025

Tuesday’s Headlines: A Mayor Without an Administration Edition

Four deputy mayors are resigning. Where does that leave our fair city? Plus other news?

February 18, 2025

Monday’s Headlines: Presidents Day Edition

We'll take the day off for the holiday, but we'll still give you a full roundup of news.

February 17, 2025

State DOT Finally Offers Up Proposal To Repair the Cross Bronx Without Expanding It

An option that doesn't involve a parallel road that carries highway traffic but still creates a new east-west connection, had not initially been on the table.

February 17, 2025
See all posts