FORD CAN'T SELL A 65/MPG CAR IN THE USA BECAUSE OF HIGH TAXES

BUSINESS WEEK - VIA DRUDGE:

If ever there was a car made for the times, this would seem to be it: a sporty subcompact that seats five, offers a navigation system, and gets a whopping 65 miles to the gallon. Oh yes, and the car is made by Ford Motor (F), known widely for lumbering gas hogs.

Ford's 2009 Fiesta ECOnetic goes on sale in November. But here's the catch: Despite the car's potential to transform Ford's image and help it compete with Toyota Motor (TM) and Honda Motor (HMC) in its home market, the company will sell the little fuel sipper only in Europe. "We know it's an awesome vehicle," says Ford America President Mark Fields. "But there are business reasons why we can't sell it in the U.S." The main one: The Fiesta ECOnetic runs on diesel.

Automakers such as Volkswagen (VLKAY) and Mercedes-Benz (DAI) have predicted for years that a technology called "clean diesel" would overcome many Americans' antipathy to a fuel still often thought of as the smelly stuff that powers tractor trailers. Diesel vehicles now hitting the market with pollution-fighting technology are as clean or cleaner than gasoline and at least 30% more fuel-efficient.

Yet while half of all cars sold in Europe last year ran on diesel, the U.S. market remains relatively unfriendly to the fuel. Taxes aimed at commercial trucks mean diesel costs anywhere from 40 cents to $1 more per gallon than gasoline.

THE HIGH TAX ON DIESEL IS WHAT'S TO BLAME.

• IF WE DIDN'T TAX DIESEL, THEN WE COULD ALL BUY CARS LIKE THIS, AND USE LESS FOREIGN OIL, AND ALL SAVE MONEY TO SPEND ON OTHER THINGS - THUS HELPING THE ENTIRE ECONOMY.
• THE ONLY REASON WE HAVE SUCH HIGH TAXES ON DIESEL IS THE DEMOCRATS.
• REPUBLICANS WOULD BE MUCH MORE LIKELY TO CUT THIS, AND OTHER TAXES, WHICH MAKE ENERGY MORE EXPENSIVE.
  

VOTE ACCORDINGLY.