Even a stopped clock is right twice a day

For the first time that I can remember, I agree with one of Charles Krauthammer’s syndicated columns:

You want more fuel-efficient cars? Don’t regulate. Don’t mandate. Don’t scold. Don’t appeal to the better angels of our nature. Do one thing: Hike the cost of gas until you find the price point.

Unfortunately, instead of hiking the price ourselves by means of a gasoline tax that could be instantly refunded to the American people in the form of lower payroll taxes, we let the Saudis, Venezuelans, Russians and Iranians do the taxing for us — and pocket the money that the tax would have recycled back to the American worker.

This is insanity. For 25 years and with utter futility (starting with “The Oil-Bust Panic,” the New Republic, February 1983), I have been advocating the cure: a U.S. energy tax as a way to curtail consumption and keep the money at home. […]

Want to wean us off oil? Be open and honest. The British are paying $8 a gallon for petrol. Goldman Sachs is predicting we will be paying $6 by next year. Why have the extra $2 (above the current $4) go abroad? Have it go to the U.S. Treasury as a gasoline tax and be recycled back into lower payroll taxes.

Announce a schedule of gas tax hikes of 50 cents every six months for the next two years. And put a tax floor under $4 gasoline, so that as high gas prices transform the U.S. auto fleet, change driving habits and thus hugely reduce U.S. demand — and bring down world crude oil prices — the American consumer and the American economy reap all of the benefit.

Krauthammer came late to this party–I supported Republican presidential candidate John Anderson’s call for a 50-cent hike in the gas tax way back in 1979-1980. (The Republican Party was not yet fully in control of the anti-tax zealots back then.)

Unfortunately, we kept the price of gas artificially low for so many decades that we’ve developed most of our suburban neighborhoods in a way that makes people depend on cars to get around. It will take some time to change our mindset and make our neighborhoods more bike-friendly and accessible by public transit.

I discussed other things individuals and governments can do to reduce our consumption of gas in this post.

Speaking of transportation policy, Democratic State Senator Matt McCoy has an op-ed in Saturday’s Des Moines Register about a bill in Congress that would (in his view) impose unnecessary regulations on the freight rail industry.

About the Author(s)

desmoinesdem

Comments