Krauthammer’s Gas Tax Would Weaken America

In a recent Washington Post article, conservative commentator Charles Krauthammer called for a $1 per gallon hike in the gas tax. His main points are that a higher gas tax—coupled with payroll tax rebates—would boost the economy, and that reduced U.S. consumption would strike a blow against hostile foreign regimes. The first point is simply wrong; even with a payroll tax swap, a higher gas tax would hurt the economy on balance. And if reducing world oil prices is the geopolitical goal, then removing barriers to North American production is far more effective than starving U.S. consumers.