In 1978, Congress established the “Gas Guzzler Tax,” requiring automakers to pay between $1,000 and $7,700 for every car produced that gets less than 22.5 miles per gallon. But the tax only applies to passenger vehicles like sedans and station wagons. SUVs and pickups, which often have much worse gas mileage, are exempt. That omission makes no sense from a policy perspective, but it is good news for carmakers producing inefficient behemoths.
In 1978, Congress established the “Gas Guzzler Tax,” requiring automakers to pay between $1,000 and $7,700 for every car produced that gets less than 22.5 miles per gallon. But the tax only applies to passenger vehicles like sedans and station wagons. SUVs and pickups, which often have much worse gas mileage, are exempt. That omission makes no sense from a policy perspective, but it is good news for carmakers producing inefficient behemoths.