The Master Speaks – Energy Policy

Now, I’m not normally in favor of higher taxes of any sort. But the Master has a very interesting proposal that just might make me want to reconsider.

He proposes a variable gas tax that would keep gas prices at $3/gallon. As the price of gas decreases, the tax would increase so that the price always stays at $3/gallon. This would accomplish two goals. First, and the Master does not mention this, it would stabilize the price of gas. High gas prices don’t hurt the economy so much as the rapid increase. It is easier to do business when you don’t have to worry about gas prices jumping 20 cents next week. Second, it would encourage conservation. He says,

The beauty of a tax that keeps gasoline at $3 is that it obviates the waste and folly of an army of bureaucrats telling auto companies what cars in which fleets need to meet what arbitrary standards of fuel efficiency. Abolish all the regulations and let the market decide.

Of course, the increasing gas tax would be offset by decreasing income and Social Security taxes. So the Master is not supporting higher taxation, just smarter taxation. Also, the tax is only part of his plan. The other part includes increasing our domestic supply through drilling in ANWR and on the continental shelf. The Master’s hope is that this policy would cause a huge drop in the world oil price, which is what happened when Americans began conserving after the oil crises of the ‘70s.

This is a very interesting plan. Unfortunately, it will never happen. The Master points out that Congress would never raise the gas tax, or allow drilling in ANWR. But it is also true that even if Congress passed this gas tax, they would never lower the income tax, and certainly not the Socialist Security tax. Alas, like all good ideas sent to Washington, this one is DOA.

–J.E. Heath
per-fidem.org

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