While politicians and consumers may not be stumbling over themselves to endorse the Federal Commission’s gas tax proposal, which Andy discussed earlier,  they may take a liking to the concept of a Net-Zero Gas Tax.  The concept, proposed by Charles Krauthammer of The Weekly Standard, balances a $1 gas tax with a $14 reduction of the federal payroll tax, theoretically reducing gas consumption without draining people’s wallets and in turn the economy.  I’m no economist, but to me it sounds like a potentially clever way to address economic, environmental, and national security issues in one fell swoop.  Here’s Krauthammer to explain:

The math is simple. The average American buys roughly 14 gallons of gasoline a week. The $1 gas tax takes $14 out of his pocket. The reduction in payroll tax puts it right back. The average driver comes out even, and the government makes nothing on the transaction. (There are, of course, more drivers than workers–203 million vs. 163 million. The 10 million unemployed would receive the extra $14 in their unemployment insurance checks. And the elderly who drive–there are 30 million licensed drivers over 65–would receive it with their Social Security payments.)

There are of course potential complications and objections, which Krauthammer addresses pretty well in his defense, but overall I think the proposal merits serious consideration.  Encouraging people to drive less, reducing our dependence on foreign oil and keeping money in consumers pockets sounds like a great plan given our current state of affairs.

takepart by learning ways to save money on gas and reduce your fuel consumption.

Photo:  StephenPoff’s Flickr Photostream (Creative Commons)