Charles Krauthammer is one of my favorite columnists, but he clearly lost it in his recent commentary (no link* but here’s the Post’s home page) advocating an increase in the gasoline tax. Krauthammer would increase the federal tax and use the receipts to either (a) reduce other taxes, or (b) fund research into alternative energy.
Let’s look at his proposal. Suppose we add a $1/gallon tax on $4/gallon gasoline, making the total cost at the pump $5/gallon. Assume 20% in “administrative expenses” and the Government has an 80 cent/gallon “profit” to distribute.
If we choose option (a) and refund the money via lower taxes, then I have an additional 80 cents (per gallon consumed) to spend. On what? Well, how about gasoline? Now I’m spending $4.20 for gasoline that used to cost $4.00.
Well, okay, let’s spend the money funding alternative energies. Um, like ethanol? Does anyone really believe that the Government is capable of picking an alternative energy winner? Please contact me if you do – I’ve got some wonderful deals on beachfront property in Arizona.
As an aside, isn’t it wonderful that the enviro-nitwits are railing against the oil companies “obscene profits” while advocating obscene profits for themselves in the form of various carbon taxes?
Amazing.
(* behind the Washington Post firewall, and I refuse to give them anything beyond my subscription money)
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