Net-Zero Tax on Gas

What does the average American do when they see the word "tax"? Well, it seems that we as a country have a completely negative tone when it comes to taxes and it does not feel as if it was going to change anytime soon. The sad thing about this picture is that our country has the opportunity to embark on a new (new in the United States at least) promising mission in the energy field that would help stabilize the sector as well as put the country on the correct road to energy independence. The idea is simple: the terms net zero refer to the true action that is taking place. Essentially, it is a situation created through the negation of both actions from one side and the other, or easily put, zeroing out the particular equation or situation at hand. Now, as for a course of action. Simultaneously, the government would enact a $1 increase in the federal gasoline tax along with a $14 reduction of the FICA tax. The numbers, in particular the $14 return, come from U.S based averages of gas consumption on a weekly basis. Now it is simple math from here on out. The average American would therefore spend $14 dollars out of his/her pocket per week and would receive a refund for the $14 dollars through a return on their respective FICA tax every week as well. Makes sense, right.

Here are the better parts. Besides helping out the average consumer immediately, it would also have a great effect in lessening the pains of a turbulent market, which as it stands now, allows gas to wander and fluctuate its price enormously. It would create a situation in which the price of gas can be stabilized to a controlled level by lowering the demand for oil. In addition, countries such as Russia will be dealt substantial economic damage due to their high investment in energy exporting, which is crucial at this point in time in terms of politics because of China's threat to both Russia as well as the United States in the future. Right now, China is on a path to becoming a regional hegemon, and with their economic strength and growing quick strike and attack first capabilities, they pose a huge risk to stability in the region, but that is a whole different story. (One that this country needs to answer quickly. We cannot expect China to be docile forever) Finally, and perhaps most importantly, the levying of a tax on gas would allow the United States to keep more liquid assets in the country, which is extremely important in the current economic climate as well as for the future, knowing that last year alone the United States sent over a trillion dollars abroad through oil trades.

If we take this one step further, perhaps take a glance into the future in regards to our push for energy cleanliness and efficiency, we notice that a tax on gas would allow for total market take over in the energy sector. THE MARKET WOULD DO EVERYTHING! Instead of creating confusion and passing new laws for gas mileage, we could lower the demand for oil, which would then push the market toward new, cleaner, and more efficient energy measures without too much government regulation besides the gas tax itself. The only problem is that people cannot see past the simple word "tax" and understand that everything about this plan makes sense, especially in a downturn like today's. We only get a few chances here or there when the gas prices get low, and personally I think we may have missed our shot. Let us just hope and pray that maybe ten or fifteen years from now we get another chance at taxing gas and we as a people make the correct choice.

MORE INFO CAN BE FOUND AT http://www.weeklystandard.com/Content/Public/Articles/000/000/015/949rsrgi.asp

The article was published by Charles Krauthammer, and offers in-depth analysis of his proposal and idea. Check it out if you get the time. Like me, you will read his article and will be continually saying the word "yes".