Earth Equity News

Treat Our Oil Addiction with a Revenue-Neutral Gas Tax. Commentary by Richard G. Lugar, WashPost, February 1, 2009. "A new president and changed economic conditions offer the chance to take a bold step toward freeing our nation from the grip of foreign petroleum.... The huge external costs of our oil addiction -- in terms of national security, economic vulnerability and environmental damage -- are not accounted for in the price Americans pay at the pump... Governments can regulate to force, or prevent, certain actions. The government also can impose targeted taxes, which are almost always the most efficient, least invasive and most transparent remedy for market failure... A revenue-neutral oil security tax would take every penny collected at the pump and put it right back into the pockets of consumers. Options for doing so include cutting the payroll tax, which disproportionately affects the lowest-paid employees, so workers would see extra money every payday. Alternatively, the government could regularly send a check to everyone over 18. I am prepared to work with the Obama administration and colleagues in Congress to devise the most efficient way to return the revenue to the American people." Sen. Lugar (R, IN) is a member of the Senate Foreign Relations Committee.