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Originally Posted by Dion
The whole green tax on gas guzzling SUV's makes no sense to me. If the Feds want people to drive more fuel efficent vehicles why not provide some incentives to the manufactuers to make more fuel efficent engines. The tax does nothing in this matter except penalise us drivers of SUV's.
I drive a mid sized SUV (Ford Escape) and would love to see a more fuel efficent engine. Yes one could buy a hybrid but they're so darned expensive. These type of vehicles are out of the price range of most families.
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Larf.
Price signals are the most basic and arguably the most efficient way to change behavior.
What you propose, subsidies, are possibly the worst way to go about reducing SUVs on the road.
Face it, you will have to pay for your preferences or you will simply change them instead of auto manufacturers trying to change demand functions.
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It will be paid by the manufacturer directly to the federal government and will likely be passed on to the dealer and ultimately the consumer.
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Gee whiz, y'think? That's that whole point, that those taxes are passed on to the consumer. They're the ones buying the SUVs. It's more efficient from an implementation and administrative perspective to levy the tax on manufacturers. The government is doing so with every intention that 100% of that tax is passed down to the consumer through increased cost functions and reduced supply.