If Obama’s got guts, intelligence and a conscience—and the backing of Republicans who want energy independence and Democrats who want Alternative Energy sources—he’ll find a way to do this without paying a huge political penalty. Our job? We’ve gotta make enough noise about this that he’ll have enough support to throw some political capital on the sword. Read allaaboutit in one of Top 10 Most Emailed articles on nytimes.com…here.
…I could only cringe when reading this article fromCNNMoney.com on Dec. 22: “After nearly a year of flagging sales, low gas prices and fat incentives are reigniting America’s taste for big vehicles. Trucks and S.U.V.’s will outsell cars in December … something that hasn’t happened since February. Meanwhile, the forecast finds that sales of hybrid vehicles are expected to be way down.”
Have a nice day. It’s morning again — in Saudi Arabia.
Of course, it’s a blessing that people who have been hammered by the economy are getting a break at the pump. But for our long-term health, getting re-addicted to oil and gas guzzlers is one of the dumbest things we could do.
That is why I believe the second biggest decision Barack Obama has to make — the first is deciding the size of the stimulus — is whether to increase the federal gasoline tax or impose an economy-wide carbon tax. Best I can tell, the Obama team has no intention of doing either at this time. I understand why. Raising taxes in a recession is a no-no. But I’ve wracked my brain trying to think of ways to retool America around clean-power technologies without a price signal — i.e., a tax — and there are no effective ones. (Toughening energy-effiency regulations alone won’t do it.) Without a higher gas tax or carbon tax, Obama will lack the leverage to drive critical pieces of his foreign and domestic agendas.
How so? According to AAA, U.S. gasoline prices now average about $1.67 a gallon. Funny, that’s almost exactly what gas cost on the morning of Sept. 11, 2001. In the wake of 9/11, President Bush had the political space to impose a gasoline tax, a “Patriot Tax,” to weaken the very people who had funded 9/11 and to stimulate a U.S. renewable-energy industry. But Bush wimped out and would not impose a tax when prices were low or a floor price when they got high.
Today’s financial crisis is Obama’s 9/11. The public is ready to be mobilized. Obama is coming in with enormous popularity. This is his best window of opportunity to impose a gas tax. And he could make it painless: offset the gas tax by lowering payroll taxes, or phase it in over two years at 10 cents a month. But if Obama, like Bush, wills the ends and not the means — wills a green economy without the price signals needed to change consumer behavior and drive innovation — he will fail…