Although the gas-guzzler tax has a simple purpose - to encourage the production of more efficient cars - the reality of its implementation is different. The tax does, indeed, apply to the most inefficient passenger care, mostly luxury sedans like Rolls-Royce's and Ford Crown Victories as well as high-performance sports cars like Jaguars and Ferraris. However, the federal gas-guzzler tax does not apply to the majority of the gas-guzzling vehicles being sold today: light-duty trucks like pickups and SUV's. When the tax was enacted, light trucks constituted only about 25 percent of new vehicle sales. Congress exempted this class] of vehicles to spare farmers and construction businesses. However, sales of SUVs and pickup trucks have grown rapidly, and now light trucks and SUV's make up about 50 percent of new vehicle purchases. These light trucks directly compete with passenger cars in the consumer market.
As SUVs and other light truck sales have grown in recent years, automakers have reaped huge profits. SUVs, minivans, and high-end pickups are being marketed to the broader consumer market as everyday passenger vehicles. vehicles once predominately used 20 haul cools and lumber are now more often used to haul kids and laptop computers. Auto industry analysts estimate that the profit margins on SUVs can range From $ 16,000 to $17,000 per vehicle...Much of this profit can be attributed to the light truck exemption from the gas-guzzler tax.
