Tuesday, November 14, 2006

Gas tax pushed by Frum, pollsters

Fresh political agitation for big gas tax hike comes from pollsters in Canada and David Frum in the US. See my latest comment. Somebody needs to explain how a rise in gasoline tax will lead to increased US energy independence.

1 Comments:

Anonymous Anonymous said...

Terence said: "Somebody needs to explain how a rise in gasoline tax will lead to increased US energy independence."

Ok, how's this?

1. Basic economic theory says that as a price rises, people consume less. Reduced consumption means America needs to import less oil.

2. Putting the tax revenues toward funding research and development of home-grown and "greener" energy sources should reduce costs and speed development of alternative energy sources.

3. Result: Increased consumption of alternate fuels puts off (and perhaps avoids) the day that society shuffers to a halt due to a shortage of affordable oil and gasiline.

The transition to alternative fuels will come. It must come. Currently, it looks like it will be a difficult, costly transition that will disrupt our everyday lives - which would impose a terrible economic cost. Taking steps now to prepare for and smooth that transition is prudent and sensible - like requiring high-rise apartment buildings to have fire escapes.

Unless you object to that too?

9:39 AM  

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