Thursday, August 09, 2007

Pigou Club News: CEO Edition

It is rare to see a CEO call for a tax on a complementary product, but it can happen if the alternative is worse.

Mulally: Gas tax worth exploring

Ford Motor Co. CEO Alan Mulally called the federal government's mandatory fuel economy requirements a failed program and suggested a tax on gasoline might do more to achieve energy independence and help the environment....

"I have never seen a market-distorting policy like CAFE," Mulally said. "It's a policy that forces you to put out more small cars than there is consumer demand for to make the bigger cars that people really do want. "You're trying to force the market instead of being market-driven."