President-elect Barack Obama must institute a gas tax if the U.S. is to avoid repeating the cycle of oil addicition, according to New York Times columnist Thomas Friedman.
He says with gasoliine prices back at pre-9/11 costs, the U.S. will lose urgency–again–to kick the fossil fuel habit, continuing to buy oversized vehicles and send the nation’s wealth abroad.
Friedman asserts that establishing the tax will be a politically difficult task for Obama, and one he may be unwilling to take. But he says no other initiative will have the multiple benefits of reducing emissions, driving cleantech innovation and giving the U.S. greater leverage against petro-dictatorships.
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Friedman has it totally wrong this time. Federal and State governments are addicted to oil and gas tax revenues. Further increases in taxes will result in more policy bias tilted towards oil companies and exploration.
Gas tax increases would hit our economy as a whole, which is already precariously titled towards depression. Friedman’s recommendation would kill off the goose that lays the egg.
A better approach is forming a realistic Federal energy policy. As well, the Federal and State governments should lead by example, setting realistic goals of sourcing a percentage of their energy use from renewable sources. Federal and State governments should also set general sustainability goals. This is called “Lead By Example”.
Friedman should consult with top economists (preferably Libertarian ones) to get a more holistic understanding of the effects of unnecessary taxes.