House Passes 'Cash for Clunkers' Bill

The House passed a plan to boost auto sales by providing vouchers of up to $4,500 for consumers who turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.

Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.

Owners of sport-utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.

More from the Wall Street Journal

Car Talk advocates $.50 gas tax

Car Talk is a NPR show where two brothers who are mechanics take caller's questions. This past show Ray renewed his call for a national gas tax, including a new idea for who can reinvent themselves as train manufacturers.

Here is an excerpt from the show and website:

"I think it's an idea whose time has come," he said. "I know most politicians have been too wussy to do it, but I think the logic of raising the gasoline tax right now is unassailable.

"Gas is less than two bucks a gallon. There's never been a better time to do this. If we added a 50-cent national, gasoline tax right now, and gas cost $2.50 a gallon, would that be the end of the world? Hardly.

"This new tax would generate between 50 and 100 billion dollars every year for the treasury. That money could be used to help rebuild our crumbling roads and bridges, and develop new technologies for more fuel-efficient cars... further decreasing demand for oil. This is a way for us to get on the wagon, and stop sending money to countries that don't like us. We could become energy independent.

"The other thing that the gas tax revenue could fund is high-speed-train infrastructure between major cities. And who would build all of the new high-tech, high-speed trains we'd need? GM and Ford! We'd help them start a mass-transit division, convert some of those factories from building inefficient gas hogs to building high-speed trains."

What do you think? Is Ray on to a genius idea that will point our country towards a sustainable transportation future? Or does he have his headlight firmly implanted in his tailpipe? Is it even a political possibility?

Says our humble co-host, "I'm sick of people whining about a lousy 50-cent-a-gallon tax on gasoline! I think its time has come, and I call on all non-wussy politicians to stand with me, because our country needs us."


Listen to Segment 9 here.

Via Hub and Spokes.