Increasing the Gas Tax: An American Taboo

After a summer of skyrocketing gas prices throughout the United States, we are now seeing amazingly cheap costs at the pump. For the average American this is great news, but soon the laws of supply and demand will bounce us back to $4 per gallon or more.

The recent drop in gas prices is partially a result of less consumption. Americans were finding more energy efficient alternatives; biking to work, using public transportation, or even weatherizing their homes. Not only were people saving at the pump, but they were more importantly decreasing our country's dependence on foreign oil. For a short period we were seeing what it means to act more environmentally friendly.

Now that prices have dropped nearly $1.50/ gallon I fear that Americans will regress back to our bad habits. It seems odd to me that gas prices can have such elasticity. Rather than let supply and demand decide the price of gas, why not determine the true environmental, social, and political cost of each gallon of gas? Why not include a gas tax to pay off the debt we owe for the wars we have fought over oil? Why not include a gas tax to pay for the true pollution cost of burning fossil fuels? Or how about a gas tax to treat the increasing number of asthmatic patients in polluted urban areas?

The current US gas tax averages around a measly 47 cents per gallon ( 28.6 state and 18.4 federal). In comparison, German citizens pay gas taxes of over $7.50 (USD) per gallon.
A much needed US gas tax increase would not only pay off debts but also create incentives or subsidies for environmentally conscious energy solutions. It would pressure auto companies to reintroduce the electric car to the American consumer. It would produce a shift in city planning approaches including more urban infill with strict city growth boundaries. It would fund the creation of extensive public transportation networks such as high-speed passenger trains connecting major US city centers (while creating thousands of new jobs). It would bring our troops home and secure our nation from international terrorism. It would transform our agriculture system towards sustainable and healthy food production. The list goes on and on.

A simple gas tax increase would have incredibly powerful and positive repercussions. So, why is it such a political challenge? Petroleum is the world's most traded commodity; it is the life force of humanity. Big oil companies with strong lobbying groups and addicted consumers have so much weight in the political process that increased gas taxes are not easily welcomed.

I think it is time we discipline ourselves if we hope to see a paradigm shift. We should pay higher costs for our poor consumer decisions and be rewarded for sustainable ones.