Almost every other developed country in the world taxes imported fuel at a much higher rate than the US. The reasoning behind this is that there are externalities which are not captured by the market (I believe it can be argued both ways).
Perhaps that is why unemployment, growth etc is lower in "most" other developed countries.
Lower the cost of doing business, and it will benefit all.
As for national security, I would agree reliance on foreign oil is a problem, however, as opposed to making gasoline more expensive, I would think development of alternative fuel sources (coal, nuclear, and wind to a lesser extent) would help offset some of that dependency.
If one HAS to place a tax (which I am never one to argue for), taxing vehicle purchases based on gas consumption would make more sense. Businesses, or those with a genuine need for a large vehicle, would be exempt. This would likely have a lesser impact on the economy, and may spur the development of more hybrid and energy efficient vehicles. |
