| By Steve Wilson - Jul 11th, 2007 at 9:04 pm EDT |
Those of you who like to bitch about increases in the price of a gallon of gasoline will not like this, but one of the best ways to reduce dependence on foreign oil and to significantly reduce greenhouse gases is obvious..increase excise taxes on gasoline and diesel fuel. Just as with cigarettes, higher taxes leads to fewer addicts. I am talking about the American addiction to gas guzzling cars and trucks, driving alone, making lots of unnecessary trips and lifestyles that are based on long commutes. You just have to visit any European city to see what a difference higher motor fuel taxes brings. More walking, bicyling, motorcyling, smaller vehicles and more use of mass transit.
Political leaders who are serious about global warming or energy independence should call on all Americans to conserve energy as their patriotic duty, but just in case that does not reduce demand, I propose that the federal tax on gasoline be equal to 100% of the pre-tax market price. If gasoline sells for $2 per gallon before tax, the tax would be $2 per gallon, making the cost at the pump $4 per gallon before state tax. The extra revenue generated by the tax increase should not go into the highway trust fund, but should be used on research for alternative energy sources, mass transit and other efficient projects that have always been underfunded.. A portion of the increased revenue could be dedicated to a refundable credit to low-income commuters who would be most burdened by the tax increase.
This proposal may not be popular, but if we are serious about making progress on energy independence and global warming, we can't keep acting as if no sacrifices need to be made. Higher motor fuel taxes will not solve the problem, but they would be a good first step to show the world we are serious about a solution and are doing our part. It will also jump start the research on technologies to compete with the internal combustion engine and bring them to the market much faster.


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Mark G