A Bowlful of Cherries

Celebrating Matty and Noah

Revenue-neutral

I wasn’t quite right — the national average for gas hit $2/gallon by Memorial Day, not $3/gallon. But you’ve probably seen the political ad blasting Senator John Kerry for his support of a tax of $0.50 on a gallon of gas. Gregg Easterbrook points out:

When the Bush campaign broadcast an ad highlighting Mr. Kerry’s 1994 gas tax position, the Kerry campaign was quick to point out that one of those who had promoted the idea of a higher gasoline tax, offset by reductions in other taxes, was N. Gregory Mankiw, now chairman of President Bush’s Council of Economic Advisers. In 1999, Mr. Mankiw proposed that the federal gasoline tax be increased by 50 cents per gallon, with income taxes reduced an equivalent amount. “Cutting income taxes while increasing gasoline taxes would lead to more rapid economic growth, less traffic congestion, safer roads, and reduced risk of global warming,” Mr. Mankiw wrote.

(Emphasis mine)

It’s a fabulous idea. There shouldn’t be a knee-jerk reaction to higher taxes, especially if the government lowers income and payroll taxes for the poor and middle class. Besides, wouldn’t you rather send money to Washington rather than Riyadh?

Advertisements

Written by Michael

27 May 2004 at 639am

Posted in Misc.

2 Responses

Subscribe to comments with RSS.

  1. You can always turn into one of those runners with the baby stroller, yes? Then you’re getting an awesome workout.

    Lisa

    28 May 2004 at 705pm

  2. I agree with Lisa…get one of those strollers you can run with…(and the pouch in the back will carry the water and sunblock).

    jodi

    28 May 2004 at 1047pm


Comments are closed.

%d bloggers like this: