CAFE chances increasing? What about hybrid tax incentives?

"There is a dangerous amount of momentum" in Congress behind tougher corporate average fuel economy regulations, General Motors Corp. Vice Chairman Bob Lutz said Tuesday at the North American International Auto Show. (more)

Of course, what costs will Congress be willing to accept to achieve an increase in CAFE? Will Congress risk tens of thousands of more auto jobs in Detroit to increase CAFE? That seems like political suicide.

Regardless, I say before Congress increases CAFE, extend tax credits for hybrid vehicles. Also, make buying a hybrid part of the small business tax credit. Give American companies some R&D money to develop lithium-ion technologies - the kind of technologies that have the ability to make any proposed increase in CAFE child's play.

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