Massachusetts Is Considering A ‘Hummer Tax’
Governor Deval Patrick of Massachusetts is contemplating putting a tax on big SUVs that are gas-guzzlers. This tax would have to be paid when vehicle owners go to register their cars after their purchase. This “Hummer Tax,†as it is widely known, would be used to pay for infrastructure, which Deval claims is suffering from a full decade of neglect.
This tax, which is designed to make car shoppers consider buying vehicles that are more fuel-efficient, will probably ruffle some feathers if it goes into effect. Vehicle purchases are already down, and any kind of tax on vehicles as the car industry is struggling will be met with some strong opposition. This law would be the first one of this kind in the U.S.
Lawmakers in Massachusetts are already thinking of enacting an increase of 19 cents in the fuel tax, which will no doubt be controversial. When you have to come find $19 billion in the next 20 years in order to modernize and maintain your transportation system, it is likely that you will have to put some unpopular ideas on the table. Unfortunately, right now consumers just feel more comfortable hanging onto their current cars and purchasing used car warranties, instead of buying new vehicles.