I like your timeframe better. A 30 year timeframe seems very long to me (and we know that Congress would want to change the tax every year or so anyway).

There were more stringent safety regulations (e.g. 5 mph bumpers, air bags), more stringent emissions regulations (e.g. catalytic converters became ubiquitous), and CAFE standards. It was good for the industry and for the economy because more sophisticated engines were required (e.g. 4 valve per cylinder heads), and more efficient, more sophisticated cars that the manufacturers could charge more for resulted.

US manufacturers are being very short sighted by not pursuing efficiency. Honda and Toyota "get it". GM, Ford, and DC don't to anywhere near the same extent. They must see that very soon giant pickups, SUVs and minivans aren't going to sell well. If they don't get on the stick, the Japanese and Korean car companies are going to eat them up again. Hybrids are [link|http://www.freep.com/money/autonews/hybrid8e_20041008.htm|growing] and US companies are late to the party.

I'm generally opposed to government trying to guide the market, in the abstract. But oil consumption isn't just a consumer-choice issue. It's a national security issue, it's a balance of trade issue, it's a technological competitiveness issue, and it's an environmental issue. The US needs to have government policies that recognize this, and I think that includes raising CAFE standards.

Cheers,
Scott.
(Who remembers gas being over $1 a gallon when he was making ~$3.10 an hour.)