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A tax you (and Creation) should love
This Catholic's View
By Thomas J. Reese, S.J.
You are going to hate this column.
When I first arrived in Washington over 30 years ago, we were experiencing the first of a series of energy crises. There were long lines at gas stations. We were shocked to pay $1 a gallon for gasoline. I had a Volkswagen Beetle so I did not have to gas up very often, but those with big cars regretted it and there was a run on small cars at auto dealerships.
Then gas lines disappeared, gasoline prices came down and we began buying big cars again. This boom and bust cycle repeated itself again and again but we never learned, nor did Detroit or Washington. SUVs and the GM bailout happened because we refused to learn.
Even 30 years ago, economists knew what to do: increase the tax on oil. Higher oil taxes would send a signal though the market to consumers to drive less, switch to mass transit where possible and buy more fuel efficient cars.
No politician had the guts to preach this gospel to the voters. Republicans called for lower taxes on oil producers, even though they pay little taxes already. Republicans also wanted more oil drilling offshore and in wilderness areas. They never thought that we might need to preserve this oil for our grandchildren, who would have safer methods for extracting the oil.
Democrats, at least those not living in Michigan, wanted higher efficiency standards for cars and subsidies to encourage insulation, energy conservation and alternative sources of energy. Politicians from farm states pushed subsidies for ethanol, an expensive and inefficient fuel made from corn and other agricultural products.
Unlike all the complicated government gimmicks to encourage conservation and alternative sources of energy, a tax on oil is simple. It tells consumers to consume less and it tells investors that prices will stay high so they can safely invest in the production of alternative energy.
You might think that a recession is a bad time to put a big fat tax on oil. You are right, but it is not a bad time to start with a small tax. A proposal that makes a lot of economic sense is imposing a tax of one cent a gallon on oil and raising that tax by one cent each month.
Such a tax would not hit consumers over the head with a club, but the hand writing on the wall would be clear: Times have changed and the good old days of cheap energy will not return. Automakers and buyers would know that the days of making and buying gas guzzlers is over. The market would encourage people to insulate their homes, turn down thermostats and buy energy efficient appliances. To the extent it cut down on carbon emissions, it would also slow down global warming.
The tax also makes fiscal sense because it would bring in more money in the future when the recession is over. With future deficits off the charts, new sources of revenue are needed.
Republicans will fear that the money will just be used for more government programs. One way to avoid that is to dedicate the revenue from the tax to paying down the national debt. As an extra incentive, the tax could continue to rise by one cent a month until the Federal budget is balanced. If the budget is balanced for a year, the tax would be reduced by one cent a gallon the following year. If the budget turns red again, the tax goes up the following year.
I told you you would hate this column. But you should love this tax. It responds to four crises that have flummoxed our country: the energy crisis, the fiscal crisis, global warming and terrorism.
Terrorism? Because of our dependency on foreign oil, we are held hostage to Middle Eastern oil producers. Some of these countries use their oil money to support radical Islam and terrorism. In other words, we are paying for both sides of the war on terrorism.
Creation, including oil, is God's gift to us and future generations. If we burn up what took many millennia to create and in the process ruin the environment and put our nation at risk, then we have failed God, our nation and future generations.
Yes, you should love this tax. If you disagree, use the comment below to describe a better program that will deal with the four problems facing our country: the energy crisis, the fiscal crisis, global warming and terrorism.
Thomas J. Reese, S.J., is a Senior Fellow, Woodstock Theological Center, Georgetown University.
By Thomas J. Reese |
February 3, 2010; 5:36 PM ET
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Posted by: YEAL9 | February 5, 2010 8:15 AM
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Why did God give so much oil to the people who have a nasty view of him?
Posted by: edbyronadams | February 4, 2010 6:23 PM
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A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are demanding a solution. What they don't realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt....
Posted by: Ezekiel37 | February 4, 2010 5:52 PM
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Actually, considering where most of the oil reserves are located, you might choose to believe that it is a gift from allah.
Posted by: PSolus | February 4, 2010 4:43 PM
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"Creation, including oil, is God's gift to us and future generations."
To the contrary, oil has now become another American addiction like the legal drugs alcohol, nicotine, Prozac etc.
Because we are addicted to it and Republicans are addicted to campaign contributions of greedy oil companies, they obscenely obstruct any effort to make us oil independent. Rather, they keep us slaves of the Middle East countries with whom we mutually pretend to be allies in-spite of severe and intolerant religious and cultural differences.
I met and conquered Satan once in the form of cocaine. America has met him in it's dependence on foreign oil and, as long as Republicans have their way, we will never conquer him in this form.
Posted by: areyousaying | February 4, 2010 4:31 PM
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"You are going to hate this column."
You guessed correctly, but for the wrong reason.
"Creation, including oil, is God's gift to us and future generations."
I realize that you want to believe that, but oil is simply the remains of ancient plants, animals, and other organisms.
Real world problems cannot be solved with superstitious thinking.
Posted by: PSolus | February 4, 2010 3:21 PM
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Nuclear and natural gas until we can transition to wind and solar. We could have enough free electricity to give away. And think of all the jobs it would stimulate.
Posted by: cmarshdtihqcom | February 4, 2010 3:00 PM
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Peak oil theory basically suggests that we have been reproducing while eating food grown with 10 calories of petroleum fuel and chemicals per calorie of food.
It goes on to suggest that the U.S. oil production peaked in 1970 and fell afterward.
It suggests that world oil production is about 40 years behind U.S. production, peaking by 2010 at the latest and then falling just as world oil demand rises all the more in places like India, China, etc.
So, as population grows, and automobiles increase, and petroleum production falls, can we really depend on the same old production method to feed everybody?
NO.
Not being able to till the fields without machinery = famine.
Hungry people get sick more easily.
Hungry people are going to fight over food and oil. Nine countries have nuclear weapons, so how can that be off the table?
Death is going to be easy and the four horsemen will ride.
Zero Population Growth and Negative Population Growth have been saying it for years, China tried its One Child Policy. Most countries ignored the problem. But the "primitive" societies knew it best. You cannot outpopulate your food supply.
Posted by: cmarshdtihqcom | February 4, 2010 2:56 PM
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The comments to this entry are closed.
PSolus easily wins the quote of the week:
"Real world problems cannot be solved with superstitious thinking."