Friedman tells Americans: Tax gasoline! Dump Hummers!
This is a column about the war of ideas ? but first a word about gasoline prices and Hummers.
In case you missed it, OPEC just decided to slash its oil production to keep gasoline prices high. I guess it would be foolhardy to expect that maybe Saudi Arabia or Kuwait would use its influence in OPEC to hold down prices at a time when Western economies are struggling to climb out of recession. Everybody's just looking out for themselves. So why don't we?
There's all sorts of talk now about how to finance the $87 billion price tag for the reconstruction of Iraq. I say, let's make OPEC pay ? indirectly. Let's have a $1 a gallon gasoline tax and call it the "Patriot Tax." We could use the revenue it would raise ? about $110 billion a year ? to finance the entire reconstruction of Iraq, with plenty left for other good works.
Here's the logic: The two things OPEC hates most are falling oil prices and gasoline taxes ? and the Patriot Tax would promote both. The reason that OPEC hates gasoline taxes is that if anyone is going to benefit from higher prices at the pump, OPEC wants it to be OPEC, not the consuming countries. It drives OPEC crazy that the Europeans pay roughly twice as much per gallon as Americans do, because their governments slap on so many taxes.
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http://www.nytimes.com/2003/10/05/opinion/05FRIE.html