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that just back during World War II, the largest oil exporter was none other than the US. Being a net
exporter of this commodity that gave us independence and allowed us to control our own economic
destiny- a trait this country has lost.
If we did not have to import our own oil, we would have almost no trade deficit and wouldn't have to borrow
from China or anyone else. It's an energy strategy issue, a national security issue, and the President's
reluctance to propose this as the underpinning of a national energy policy is perplexing. Worried you won't
get the votes? Offer the GOP more drilling rights to get their votes. It would mean a much more competitive
and independent country.
Via NY Times:
“People do not change when you tell them they should; they change when they tell themselves they must,”
observed Michael Mandelbaum, the Johns Hopkins University foreign policy specialist. And nothing would
tell Iran’s leaders that they must change more than collapsing oil prices.
Mr. Obama has already started some excellent energy-saving initiatives. But we need more. Imposing an
immediate “Freedom Tax” of $1 a gallon on gasoline — with rebates to the poor and elderly — would be a
triple positive: It would stimulate more investment in renewable energy now; it would stimulate more
consumer demand for the energy-efficient vehicles that the reborn General Motors and Chrysler are
supposed to make; and, it would reduce our oil imports in a way that would surely affect the global price
and weaken every petro-dictator.
Original Article
exporter of this commodity that gave us independence and allowed us to control our own economic
destiny- a trait this country has lost.
If we did not have to import our own oil, we would have almost no trade deficit and wouldn't have to borrow
from China or anyone else. It's an energy strategy issue, a national security issue, and the President's
reluctance to propose this as the underpinning of a national energy policy is perplexing. Worried you won't
get the votes? Offer the GOP more drilling rights to get their votes. It would mean a much more competitive
and independent country.
Via NY Times:
“People do not change when you tell them they should; they change when they tell themselves they must,”
observed Michael Mandelbaum, the Johns Hopkins University foreign policy specialist. And nothing would
tell Iran’s leaders that they must change more than collapsing oil prices.
Mr. Obama has already started some excellent energy-saving initiatives. But we need more. Imposing an
immediate “Freedom Tax” of $1 a gallon on gasoline — with rebates to the poor and elderly — would be a
triple positive: It would stimulate more investment in renewable energy now; it would stimulate more
consumer demand for the energy-efficient vehicles that the reborn General Motors and Chrysler are
supposed to make; and, it would reduce our oil imports in a way that would surely affect the global price
and weaken every petro-dictator.
Original Article
| Freedom Tax on Oil by John S. Boyd, June 24, 2009 |
I love this piece by Friedman who is proposing a $1 dollar Freedom Tax on oil.
One of the biggest reasons for me to start this blog was to talk about energy and
ideas like taxing all oil imports. I love Friedman's proposal but I'd rather just have
an even stiffer tax on all oil imports at something like $20 dollars a barrel. W e
could offer rebates to the old and the poor, and use the money to fund
transportation, the auto bailout, health care or just to pay down our own debt.
Why is a tax on oil imports preferable to a tax at the pump? US producers are the
highest marginal cost producers and a tax at the pump actually discourages
domestic exploration. A tax like this on oil, one way or the other, will get us off oil
imports within about 20 years as new technologies in hybrids are rolled out. It's
the single most important thing we could do to improve our nation's
competitiveness.
It's not anti trade either since oil production is governed by a cartel. People forget
One of the biggest reasons for me to start this blog was to talk about energy and
ideas like taxing all oil imports. I love Friedman's proposal but I'd rather just have
an even stiffer tax on all oil imports at something like $20 dollars a barrel. W e
could offer rebates to the old and the poor, and use the money to fund
transportation, the auto bailout, health care or just to pay down our own debt.
Why is a tax on oil imports preferable to a tax at the pump? US producers are the
highest marginal cost producers and a tax at the pump actually discourages
domestic exploration. A tax like this on oil, one way or the other, will get us off oil
imports within about 20 years as new technologies in hybrids are rolled out. It's
the single most important thing we could do to improve our nation's
competitiveness.
It's not anti trade either since oil production is governed by a cartel. People forget
| John S. Boyd writes on macroeconomics, current events, policy, technology, gadgets, venture capital and anything else of daily interest. View John's Blog. Read John's Bio. |
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