Net-Zero Gasoline Tax

By MJK | January 24, 2009

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In my Post, Impose a Modest Gasoline Tax Now (12/30/08), I advocate implementing a gas tax now that oil prices are so low.  The eloquent conservative commentator Charles Krauthammer also recently wrote in The Weekly Standard advocating a gas tax.  See The Case for a Net-Zero Gas Tax.  He proposes making it “net-zero,” where we offset the raise in the gas tax with a commensurate reduction in the payroll tax.  For those interested in this subject, this article is a worthy read.

UPDATE:  Senator Richard Lugar (R-IN) just advocated this.  See Raise the Gas Tax (Washington Post, 2/1/09).

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9 Responses to “Net-Zero Gasoline Tax”

  1. BrianNo Gravatar Says:
    January 29th, 2009 at 12:05 am

    Any increase in the gasoline tax will not pass until the economy strengthens. Plus, cheap fuel, fuels the economy.

    It took 100 years to build the world on oil. It will take another 100 years to get off it.

    The World runs on oil, get over it!

    Reply

    MJKNo Gravatar Reply:
    January 29th, 2009 at 2:41 am

    Brian, it is probably true that a gasoline tax couldn’t pass now, but that doesn’t mean it’s not a good idea. If our politicians really thought long and hard, they would take such personal risks to help our country out. So, with your comment, do you really believe that we cannot do anything to at least chip away at our dependence on oil?

    Reply

    Brian KedershaNo Gravatar Reply:
    January 30th, 2009 at 2:20 am

    No, we will not be getting off oil, until we develop better batteries, nuclear fusion and room temperature super conductors.

    Reply

    MJKNo Gravatar Reply:
    February 1st, 2009 at 2:49 pm

    Brian, Senator Richard Lugar (R-IN) wrote an article in the Washington Post today (Raise the Gas Tax) advocating a net-zero gas tax along the lines of Krauthammer’s suggestions. He said that he is willing to work with the Obama administration to effect such a proposal. So you see, maybe there is some hope for this after all?

  2. davisNo Gravatar Says:
    January 30th, 2009 at 2:51 am

    Chip away? Sure we can – just heavily tax SUV’s (there is no need for them whatsoever), tax incentivize fuel efficient and hybrid vehicles and more efficient light bulbs (is there any reason not to?). This will eliminate our consumption by 20-30% accd. to experts and not impact our quality of life in any meaningful way whatsoever.

    Reply

    MJKNo Gravatar Reply:
    January 30th, 2009 at 12:54 pm

    Davis, I agree with you. Regarding the tax on SUVs, a gasoline tax will hit them the same way since they guzzle more, their owners will pay more to fuel them. One thing I am happy about with President Obama is that he recognizes the energy crisis, and the need for Government to create incentives for private business to develop alternatives to fossil fuels. That, and the fact that current low energy prices hasn’t caused him to shift this approach.

    Reply

  3. BrianNo Gravatar Says:
    January 30th, 2009 at 4:27 pm

    There is an SUV tax, the gas guzzler tax. Regardless, alternative energy sources will not be around for a long time.

    Reply

  4. BrianNo Gravatar Says:
    February 1st, 2009 at 5:12 pm

    There will not be an increase in the gasoline tax this year. It would cause an even deeper recession.

    Reply

    MJKNo Gravatar Reply:
    February 1st, 2009 at 9:12 pm

    I disagree. Why would a net-zero gasoline tax cause a deeper recession? Since it would be “net-zero,” it would be revenue neutral. In fact, at least according to Krauthammer’s article, he would reduce the payroll tax to make the offset. This would immediately allow wage earners to keep more of their wages from withholding each payperiod.

    Reply

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