Diesel vehicles are expected to outsell hybrids in the United States within five years. This influx of clean and efficient will require a change to the tax code.
According to a study by UBS and Ricardo, annual diesel and hybrid gasoline vehicle sales in the United States of $2.7 million by 2012. Currently people who buy hybrids get a tax credit of varying amounts, but that code should be rewritten so that vehicle taxes are based on the combination of their price and fuel efficiency relative to the category of vehicle. This is fair to buyers, auto makers (since some bigger vehicles would receive a tax credit) and to the planet.
It is often said that the government shouldn't choose winners and losers
-- let the best technology win. If a diesel can get equal or better fuel economy (and therefore pollute less) than a hybrid, there's no reason for a tax disadvantage. (Spoken as a former happy hybrid owner).
Yes, this would be a modified carbon tax. If you spend $20,000 for a diesel vehicle that gets much better mpg than its class of vehicles, you should be paying much less in vehicle tax than a "mild" hybrid SUV
that gets much worse mileage.
Many Americans are too short sighted to see the financial benefits of buying a diesel vehicle over time, but saving a few grand up front would get their attention. The taxes on high performance but gas guzzling vehicles should continue to be high.
