L'État N'est Pas Nous
12 April 2007
Editor, Washington Times
To the Editor:
Carl Henn wants to raise taxes on gasoline so that oil consumption is curtailed (Letters, April 12). He argues that, because oil is a finite resource allegedly destined to increase in value, taxing it more heavily means that "we" can "capture" this rising value. If we don't raise taxes, Mr. Henn says, the rising value of oil will simply redound in profits to oil companies.
There's plenty wrong with Mr. Henn's argument. But his most serious error is to suppose that more revenue for government is akin to more wealth for citizens. In fact, revenue in the paws of politicians is likely to be squandered; profits on the books of oil companies is likely to be used productively - reinvested in exploration, for example - as well as to inspire entrepreneurs to develop alternative fuels.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Editor, Washington Times
To the Editor:
Carl Henn wants to raise taxes on gasoline so that oil consumption is curtailed (Letters, April 12). He argues that, because oil is a finite resource allegedly destined to increase in value, taxing it more heavily means that "we" can "capture" this rising value. If we don't raise taxes, Mr. Henn says, the rising value of oil will simply redound in profits to oil companies.
There's plenty wrong with Mr. Henn's argument. But his most serious error is to suppose that more revenue for government is akin to more wealth for citizens. In fact, revenue in the paws of politicians is likely to be squandered; profits on the books of oil companies is likely to be used productively - reinvested in exploration, for example - as well as to inspire entrepreneurs to develop alternative fuels.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Monday November 19, 2007 at 5:33pm