http://blog.psaonline.org/2006/09/07/a-gas-tax-refund-for-energy-security/ Wed, 08 Feb 2012 08:45:45 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://blog.psaonline.org/2006/09/07/a-gas-tax-refund-for-energy-security/comment-page-1/#comment-408681 Across the Aisle » Weather can be scarier than terrorists Fri, 26 Oct 2007 17:10:57 +0000 http://blog.psaonline.org/2006/09/07/a-gas-tax-refund-for-energy-security/#comment-408681 [...] I’m a firm believer in markets and therefore, I believe that the main way we must deal with climate change is through market mechanisms.  I have little faith that our environmental problems can be solved on a wide scale simply by well meaning people making better informed choices.  People respond to economic incentives and right now the incentives are set up to overproduce the greenhouse gasses that lead to climate change.  I’m also a strong believer in externalities and the fact that the market frequently undervalues the externalities that are inherent in our economic activities.  In order to correct for these externalities, we must consider the role of tax policy.  Few politicians want to go there, but I feel that it’s time that both Democrats and Republicans start bringing this into the debate.  I’ve written several times already about the need to increase the gasoline tax and match that with a reduction in the payroll tax.  We need many similar initiatives in other components of our economy to get us on track combatting climate change. It’s not a matter of government handouts for technology research.  The market can incentivize the development of energy saving and environment conserving technology.  We just need to be willing to facilitate the development of such mechanisms through our tax policy.  [...] [...] I’m a firm believer in markets and therefore, I believe that the main way we must deal with climate change is through market mechanisms.  I have little faith that our environmental problems can be solved on a wide scale simply by well meaning people making better informed choices.  People respond to economic incentives and right now the incentives are set up to overproduce the greenhouse gasses that lead to climate change.  I’m also a strong believer in externalities and the fact that the market frequently undervalues the externalities that are inherent in our economic activities.  In order to correct for these externalities, we must consider the role of tax policy.  Few politicians want to go there, but I feel that it’s time that both Democrats and Republicans start bringing this into the debate.  I’ve written several times already about the need to increase the gasoline tax and match that with a reduction in the payroll tax.  We need many similar initiatives in other components of our economy to get us on track combatting climate change. It’s not a matter of government handouts for technology research.  The market can incentivize the development of energy saving and environment conserving technology.  We just need to be willing to facilitate the development of such mechanisms through our tax policy.  [...]

]]> http://blog.psaonline.org/2006/09/07/a-gas-tax-refund-for-energy-security/comment-page-1/#comment-116677 Across the Aisle » The real cost of gasoline Wed, 30 May 2007 17:04:03 +0000 http://blog.psaonline.org/2006/09/07/a-gas-tax-refund-for-energy-security/#comment-116677 [...] Of course, most people will say that proposing a gasoline tax is political suicide.  Please read my previous blog post that suggests a gas tax refund that proposes that at the same time we dramatically increase the gasoline tax, we make an equal cut in a current regressive tax – the payroll tax.  This tradeoff would mean that the average person would be left with the same money in his/her pocket at the end of the day, but would have a very strong incentive to switch to new fuel saving technologies.  Granted, some people will be better off and others will be worse off, but let’s not fool ourselves into thinking that the dramatic changes necessitated by the energy problems we’re facing will be solved for free through the magic of technology.  [...] [...] Of course, most people will say that proposing a gasoline tax is political suicide.  Please read my previous blog post that suggests a gas tax refund that proposes that at the same time we dramatically increase the gasoline tax, we make an equal cut in a current regressive tax – the payroll tax.  This tradeoff would mean that the average person would be left with the same money in his/her pocket at the end of the day, but would have a very strong incentive to switch to new fuel saving technologies.  Granted, some people will be better off and others will be worse off, but let’s not fool ourselves into thinking that the dramatic changes necessitated by the energy problems we’re facing will be solved for free through the magic of technology.  [...]

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