The dependence that the
Pigou taxes, those that correct a market externality, appear to be taxes that correct social imbalances, or market deficiencies. A Pigou tax, for example, is a tax on cigarettes or alcohol. Yet Pigou taxes can have more far-reaching effects. A tax on gasoline consumption, another example of a Pigou tax, would not only lead to benefits domestically, but would also contribute to reducing
Such a reduced reliance on foreign oil-producing countries would certainly give the
Yet this is merely conjecture. And while such conjecture may indeed be correct, can such guess-work, and indeed political gerrymandering, be used to justify a significant hike on the consumption of a good many Americans deem indispensable? Perhaps it can, but it is most likely the belief of most Americans that their individual consumption of oil has little to do with
Luckily, such incentives exist. The effect of gasoline consumption on the environment is becoming more and more apparent. The threat of global warming looms, and
The argument for a raise of the gasoline tax can be made on many more fronts. Increased revenue for the government, regulatory relief, economic growth and the reduction of road congestion are all likely byproducts of an increase in the gas tax. Yet it is the issues of national security and environmental concern that make an increase in the gasoline tax not just ideal, but imperative.