This tiff over gas and oil taxes only highlights the intellectual policy confusion – or perhaps we should say cynicism – of our politicians. They want lower prices but don’t want more production to increase supply. They want oil “independence” but they’ve declared off limits most of the big sources of domestic oil that could replace foreign imports. They want Americans to use less oil to reduce greenhouse gases but they protest higher oil prices that reduce demand. They want more oil company investment but they want to confiscate the profits from that investment. And these folks want to be President?

Collecting higher royalties would not change the price gas at the pump by a penny — but it would put funds in our common coffers instead of in private pockets — and those private pockets aren’t entitled by any logic I can defend.

I happen to agree that lowering the gas tax temporarily would be a mistake. The consumer would see no benefit, and we’d need to make up for the lost revenue with other taxes that would be equally or more injurious to our economy.

What we really need to do is get our entire incentive system straightened out. My study suggests that the answer starts with Land Value Taxation. Check out http://www.wealthandwant.com/, http://www.answersanswers.com and http://lvtfan.typepad.com for more information.

This photo was on the news this morning …

http://www.thebasicsabout.com/Obama/M-Obama2.jpg

Right in the FRONT ROW ….