CEOs Floating a Gas Tax Increase
Friday, November 21st, 2008
CEOs of some of the world’s most prominent companies are floating the idea that the U.S. “consider raising taxes on gasoline,” according to Real Time Economics on The Wall Street Journal Online.
Idea “Tucked Away”
The idea, which according to Journal editors was “tucked away” in a proposal on long-term tax policy, came about during a two-day session this week in which nearly 100 CEOs of global companies gathered to define the priorities they believe President-elect Barack Obama and the new Congress need to tackle when they take office in January. (Finance and the U.S. economy; energy and the environment; health care; and America’s role in the global economy were the four key issues the CEO Council discussed, underscoring that there will be no dearth of work Obama’s administration will face.)
Proponents of raising the gas tax say that it will lower gasoline consumption, encourage both the production and market for fuel efficient vehicles, lower imports, and decrease polluting emissions.
Critics argue that increased taxes unfairly burden consumers, especially the poor, and that reduced consumption hurts industry. (I haven’t found anyone yet that says pollution is good, but I’m sure there’s someone out there!)
Support Gaining Steam?
Raising the gas tax, of course, is nothing new. But until now its support has been limited. Because most Americans are dependent on cars to get to work, school, and every else, opponents have been able to build a broad coalition that makes politicians think that championing the cause would be certain political death.
But now something different is happening. There is an increasing awareness of the interconnectedness of energy use, economy, the environment, and public health. And when CEOs of companies that collectively employ 5.9 million people and $2.2 trillion in annual revenues say officials should consider raising the gasoline tax, my bet is that this idea won’t go away quietly this time.
The Wall Street Journal will report results of the CEO Council Monday, November 24, 2008.
More resources:
The Wall Street Journal CEO Council:
https://ceocouncil.wsj.com/index.html
