Wednesday, May 03, 2006

Fueling Dictatorships

Here's another take on the gas tax issue, from Max Boot, who says that, rather than decreasing the tax, the government should be increasing it as a way to direct the country toward alternative sources of fuel, and away from foreign dependence.


The most important step would be to increase the federal gasoline tax, currently a paltry 18.4 cents a gallon. Congress should enact a sliding-scale tax that rises as oil prices fall and vice versa. That would shape demand, which would in turn shape prices. The goal would be to create a "floor" at, say, $50 a barrel, which would avert the kind of precipitous price collapse that in the past has eviscerated investment in alternative energy sources and kept low-cost oil producers such as the Saudis and Russians in the driver's seat.
Boot explains that, as things stand now, when we fill the gas tank we are funding dictators around the world.


Of the top 14 oil exporters, only one is a well-established liberal democracy — Norway. Two others have recently made a transition to democracy — Mexico and Nigeria. Iraq is trying to follow in their footsteps. That's it. Every other major oil exporter is a dictatorship — and the run-up in oil prices has been a tremendous boon to them.

He makes some good points. Have a look.

Hat tip: Instapundit

1 comment:

  1. Nice idea with this site its better than most of the rubbish I come across.
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