More gas tax hot air from Kuhl
Randy Kuhl is playing games with the tax on gas again. Here’s the analysis from The 5th Estate blog:
My U.S. congressman reintroduced a bill last week that would cut the federal gasoline excise tax by 10 cents a gallon each time the retail price of unleaded regular hits $3.
That gesture may please his rural constituents as he faces a tough re-election campaign in ‘08, but it’s a wrong, short-sighted policy that will cost his constituents and other taxpayers money in the long run.
It’s hard to think of a more transparent gimmick than this one. Let’s mess around with ten cents on the price of gas when it hits an artificial ceiling of 3 bucks. That’s what the free market is all about, right?
You people with cars will get upset at me over this, but the best way to deal with the externality of carbon emissions of gasoline is to internalize the externality by imposing a tax. Al Gore is calling for a Carbon Tax, which is the ideal.
In terms of gas, however, the best way to
1. Spur investment in alternative fuels/efficiency
2. Discourage wasteful use of gasoline
is a Gas Tax. A Pigovian tax, if you will.
Read more here and here