As energy analyst Jerry Taylor of the Cato Institute points out, prices are now at the level required to balance supply and demand. Cut prices by the amount of the gas tax, and consumption will rise, pushing prices back up. So drivers would get no holiday, and the economy would get no stimulus. About the only effect would be to "transfer money from the federal government to the oil companies," says Mr. Taylor. The gas tax hiatus would also enlarge the federal deficit.
Besides proposing useless or damaging ideas, the candidates have also passed up the best idea for energy policy: a carbon tax that would curb use of fuels that release greenhouse gases, while encouraging development of clean alternatives. Better yet would be a carbon tax whose revenues go to cut payroll taxes for Social Security and Medicare, rewarding work without raising the deficit.
It's a win-win concept with wide support among economists, but almost none among politicians. That's the nature of energy policy in an election year: Any bad idea may be adopted, while the good ones remain orphans.
Steve Chapman is a columnist for the Chicago Tribune. His column appears regularly in The Sun. His e-mail is schapman@tribune.com.
Survey says...
With gasoline at a record $3.50 a gallon and oil near $118 a barrel, it's not surprising that 62 percent of Americans believe the United States is likely to face a critical energy shortage during the next five years.
When asked specifically about energy policy priorities, 55 percent favor more conservation and regulation of energy, while 35 percent support expanded energy exploration.
Ninety percent of Americans favor requiring better auto fuel efficiency standards, while substantial majorities also support increased federal funding for alternative energy (81 percent) and mass transportation (72 percent).
The public is closely divided over the idea of promoting more nuclear power (48 percent opposed, 44 percent in favor).
A majority (53 percent) opposes giving tax cuts to energy companies to do more oil exploration.
Roughly 90 percent of the public supports tougher auto fuel standards.
Source: National Gallup and Pew polls conducted in recent weeks
