Decent article over the weekend by Friedman about how our government should impost a gas tax -- that we are not taking the necessary tough road. We're being wimps -- "real cheese-eating surrender monkeys" he calls our politicians. I can't agree more.
However, where Thomas and I disagree is what to do with the money. Increasing taxes is the 3rd rail I always try to avoid -- regardless of the good intentions -- so I would rather drop the income tax. Have the income tax indexed to the gas tax -- the more money we raise in gas tax, the less we pay in income taxes that year. If we raise the gas tax we are going to affect the economics of much of the country and we need to compensate. Food is going to be more expensive, commuter communities are going to be pissed, etc..
Such a tax would make our economy healthier by reducing the deficit, by stimulating the renewable energy industry, by strengthening the dollar through shrinking oil imports and by helping to shift the burden of health care away from business to government so our companies can compete better globally. Such a tax would make our population healthier by expanding health care and reducing emissions. Such a tax would make our national-security healthier by shrinking our dependence on oil from countries that have drawn a bull's-eye on our backs and by increasing our leverage over petro-dictators, like those in Iran, Russia and Venezuela, through shrinking their oil incomes.
In sum, we would be physically healthier, economically healthier and strategically healthier. And yet, amazingly, even talking about such a tax is "off the table" in Washington. You can't mention it. But sending your neighbor's son or daughter to risk their lives in Afghanistan? No problem. Talk away. Pound your chest.