Friday, October 20, 2006

Mankiw's Top 10 List for $1 Gas Tax

Well, Harvard economist Greg Mankiw actually only gives 7 reasons for a $1/gallon gasoline tax in his WSJ article today:

1. Help the Environment
2. Reduce traffic congestion
3. Reduce energy dependence
4. Help the federal budget, $100 billion per year in increased tax revenue
5. Tax incidence - some of the $1 tax would be paid by OPEC producers
6. Economic growth - tax consumption, not income and investment
7. National security

Even after a $1 hike, the U.S. gas tax would still be less than half the level in, say, Great Britain. But don't expect those vying for office to come around until the American people recognize that while higher gas taxes are unattractive, the alternatives are even worse.

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