Even some flailing auto industry execs want a gas tax

Even some flailing auto industry execs want a gas tax With the slow-turning gears of the auto industry finally moving away from gas guzzlers, some auto execs are changing their tune about the gas tax.

In March, U.S. hybrid sales were down a whopping 44 percent compared to last March, according to the Green Car Congress.

Since the price of gas seems to be low and stable for the moment, car buyers are ditching their hybrid hopes and have once again turned to the-bigger-the-better theory.

What may be the one thing that could make American’s sing an electric-motor tune? Well, any gas price of more than $4 a gallon would likely do the trick.

To get there, it may be in the industry’s best interest to hijack the price of gas with higher taxes, according to The Environment Report.

The CEO of the largest chain of dealerships in the nation, Michael Jackson of AutoNation, said the government should keep prices hovering at $4 with a floating gas tax.

Auto analyst Brett Smith says high gas prices are really the only thing that make consumers think fuel economy.

“Look at what’s happened every time we’ve had an energy crisis,” he told The Environment Report. “We’ve gone to smaller cars for a couple of years, and then the consumer has gone back to larger cars. Why? Because at that fuel price they can get away with it, they can justify it.”

In BusinessWeek, contributing economics editor Christopher Farrell put forth an argument for raising the gas tax from its current 18.4 cents a gallon to as high as $1 per milk jug of the stuff.

He says the move would push oil conservation and send this clear message to the Persian Gulf oil producers: We don’t like our gas appetite tied to your oil supply.

This wouldn’t be the first time lawmakers have used American addictions against taxpayers. Think cigarette taxes. Think state-sponsored lotteries.

If lawmakers are truly interested in helping the auto industry make the move to environmentally friendly cars, they wouldn’t be afraid to pump up the prices at the pump.