Law Students

The argument over the feasibility and effectiveness of an increased tax on gasoline has been debated for years now in this country, but mainly by newspaper columnists and policy wonks, rather than the politicians who would actually have the ability to make such a tax happen.  Understandably, politicians regard this topic as politically toxic, especially as the average American continues to struggle with $4/gallon gasoline.  But in the wake of abnormally high gas prices this summer, the potential effectiveness of a gas tax is becoming more clear.  Americans reduced their gasoline usage this summer, and for once, the market began to demand that the alternative energy industry respond with options cheaper than gasoline. 

The idea to increase the gas tax in the United States begins with the presumption that the market is the most powerful force that can curb American's energy use and the world's shift to cleaner energy.  Today, the Washington Post Editors propose that we consider a gas tax that would set the price floor of oil in the United States at $110/barrel.  When the worldwide price of oil is below $110/barrel, a tax would keep the price artificially high, and then the government would rebate the tax revenues at the end of the year.  In defense of its plan, the Post continues:

The gasoline tax proposal is certainly more complicated than I will even pretend to understand.  But I do agree that the free market will drive alternative energy innovation more than any Congressional proposal can.  This country urgently needs to take the lead in the alternative energy industry...it may be worth giving the market a little bump in order to keep us on track in our pursuit of energy independence and a cleaner environment.