The price of gasoline should go higher. I propose a gas tax to place a floor price of $6/gallon on gasoline. I have to give some thought to what to do with the proceeds - my first instinct is to set up superIRAs for the populace - but to me that's less important than making gasoline more expensive. This is a basic Pigovian tax, and the benefits would flow broadly: environmental improvement, land use rationalization, increased population densities (with corresponding cultural benefits), better mass transit. And best of all it wouldn't force anyone to do anything - if you still want your SUV, you can have it, but you have to be willing to pay for the fillup.
|