The Oil Drum

44 comments on WSJ writes that gas taxes make sense

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oilmanbob on February 9, 2007 - 10:17pm

An import tax is my preferred solution too. The extreme volatility of oil and gas prices combined with the politicle hatred of the Majors and the foreign national oil companies makes it more difficult for independents to raise money,and makes the investors take a short-sighted view of investments in solar and wind.

I'd like to suggest that the tax be revenue nuetral, and that the proceeds be invested in renewable energy, mass transit, buying out the mid-eastern ownership of our national debt and subsidies for energy conservation measures like hybrid vehicles. We're importing 14 million barrels every day and thats a phenominal drain on our economy, as is the horrendous cost of resource wars. Every penny we pay in interest to the Saudies and Kuwaities is going to support monarchies that hate us.

And as long as I'm king of the United Siates, I'd mandate that all cars and light trucks sold in the US must be diesel
-electric hybrids with a plug in capacity, or straight electric cars and scooters. Instead of widening roads, how about mandating all cars need to be 18" narrower, and include a congestion tax with electric scooters, autos exempt in all cities. Make all people who can't prove a business use for their light trucks wear a bumper sticker saying "I drive this because I have a small penis"

of course shortly after the bumper sticker law I'd expect to be asasinated...

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mbnewtrain on February 9, 2007 - 11:28pm

I am in agreement 100% about an oil import tax. This would make those industrial and commercial users of oil share in paying for these costs associated with obtaining energy from foriegn countries. The less efficient transport modes, especially airlines and trucking firms, would object strongly. But, this import tax is the only politically acceptable way to promote the more efficient modes like rail and water. Perhaps a tax credit for the railroads to encourage them to install electrification for propulsion would be in order also.

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Valuethinker on February 10, 2007 - 9:56am

The problem with increasing US domestic oil production is:

oil is an *exhaustible* resource (as we all know ;-)

so there is no particular reason to want the US to exhaust its resources of oil *before* foreign countries.

Better in fact the other way, whilst countries like Saudi Arabia and Venezuela are willing to ship the US oil, the US should take it with open hands/ports/pipelines.

So better a tax on oil use generally, than one simply on imports.

All your import tax would be doing is handling a short term windfall to the holders of existing US oil reserves.

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tstreet on February 10, 2007 - 2:38pm

Not sure this tax can be revenue neutral if you are using the proceeds to fund things. The idea of revenue neutrality is to reduce other taxes to make up for the increased oil import taxes. You can't have it both ways.