CNN's Wastler Backs $1 Gas Tax Hike
Gas prices are high, but CNN wants them higher. Lots higher. CNNâs Allen Wastler told viewers April 28 that the government should increase the price with a huge new tax. âPut in a tax to make it $4 a gallon right now,â he urged.
As of April 30, that would equal a tax hike of $1.047. According to the American Petroleum Institute, the average taxes on a gallon of gas already equal $0.458. Combined, the government would make $1.50 on every gallon of gasoline.
Wastler, Managing Editor of CNNMoney.com, said the high prices have encouraged alternatives. âBecause when you saw us flirting with $3, all the sudden we got a burst in hybrid production, we got a burst in ethanol production,â he explained to the âIn the Moneyâ audience.
Interestingly, Wastler urged government intervention at the same time he was saying the current system functions well. âOh my goodness, the market works!â he exclaimed about the increased production of alternative fuels.
The âIn the Moneyâ team wasnât just satisfied with urging higher-priced gas. Host Ali Velshi did his part hyping $4-a-gallon gasoline â when the national average hasnât even hit $3. âThere are forces that could make $3 gas something that we're not worrying about because we're worrying about $4 gas. Three-dollar gas could end up looking like a bargain for you,â said Velshi.
At least Wastler undermined that prediction a bit. He pointed out that inventory and refinery problems had contributed to the gas increase, adding that has âsome experts â some, not all â saying you'll see $4 a gallon gas this summer. Particularly if you live on the West Coast,
He added that more expensive gasoline would encourage âa ramp-up in production.â
âLet me make this clear: There will be $4.00 and $5.00 and $6.00 gal prices across the country this summer, but theyâll be primarily in two small segments: the rental car return counter âŚ and, perhaps in tony little areas like Greenwich, Connecticut and Beverly Hills, California,â wrote Kloza.
This wasnât even the first time CNN has urged higher gas taxes. There âcould be a good argument for a gas tax in all of this to help pay for these alternative fuels,â then âAmerican Morningâ co-host Miles OâBrien suggested on the April 25, 2006, program.