AutoNation's CEO calls for higher federal gas tax

DETROIT, Jan 15, 2008; Poornima Gupta writing for Reuters reported that AutoNation Inc Chief Executive Mike Jackson on Tuesday called for an increase in the U.S. federal tax on gasoline as a way to encourage consumers to opt for more fuel-efficient vehicles and reduce U.S. dependence on foreign oil.

Jackson proposed a gradual implementation of a gas tax of $1 per gallon. The federal gas tax has remained unchanged since 1993 at 18.4 cents per gallon.

The CEO of the largest U.S. public car dealership group said Europe's high gas prices of over $6 per gallon had led to higher fuel efficiency in the region.

Despite rising U.S. gasoline prices - which are the focus of criticism and complaints from the public and U.S. politicians - fuel efficiency remains low on the consideration list of consumers, Jackson said at a luncheon speech on the sidelines of the North American International Auto Show.

"I get customers every day that will trade off 3 miles per gallon for a better cupholder," he said.

Jackson's comments follow a congressionally appointed panel's recommendation that U.S. gasoline taxes should go up sharply to pay for upgrades to highways, bridges and other transportation networks.

The National Surface Transportation Policy and Revenue Study Commission called for raising the federal gasoline tax between 25 and 40 cents per year over five years.

The average price U.S. unleaded regular gasoline is $3.07 a gallon, the government reported on Monday. That price includes federal and state taxes.

While there is some support in Congress for raising the gas tax for highway construcdtion, the Bush administration opposes it.