I’m a budget hero!
Big kudos to the creators of Budget Hero, the awesome federal budget simulator. One quick round of Budget Hero has a tendency to demystify all that federal budget deficit blather we hear all the time.
But here’s the thing: my biggest success came on taxes. Specifically, it came by repealing the Bush tax cuts, by capping and limiting greenhouse emissions, and by adding $0.50 to the federal gas tax. The first two are no-brainers, but that last item might bother some people.
Raising the gas tax, however, is something I strongly believe in. It would be better for the economy, better for national security, better for the budget, even better for business.
First, by making it more painful for consumers to burn gasoline, we discourage it, which reduces our dependency on foreign oil. Hummers and Escalades and other enormous SUVs will be traded, sold, converted, or sit and rust.
The second effect of increasing the pain at the pump is increased motivation for investment in alternative energy sources. Look, it’s not a search — solar power, electric power, ethanol, and natural gas are already here, but far too few people are switching. It’s still easier for people to come up with the money for gasoline than it is for them to change to a new fuel system.
A third result of increased gas tax is increased competition. This doesn’t really matter much to me, but there are a lot of people who hate the idea of Exxon-Mobil making a profit when they sell you gasoline. A $0.50 hike in prices across the board would put pressure on gas stations to keep prices lower, lest they lose business.
Fourth, it adds incentives for cities to develop or improve mass transit systems. There are too many cities where people would love to commute, but there are no options for doing so.
Oh, and let’s not forget the environmental impact of burning less gasoline.
The real issue for me, however, is competitive advantage. The economic position of the US has been slipping. We’re sinking from our position as the global leader. Raising gas tax changes that. Increased federal revenue means less borrowing. Increased innovation means industrial leadership. Oh, and a big one for me: new jobs working in these alternative energies — jobs right here in our country, rather than in India or China or Mexico.
But enough of my argument for increased gas tax. Go play the game. See what you can learn about our economy. Get a real feel for the tragic impact George Bush has had on our country, and get an idea of some of the easy and innovative things that can be done to fix it.
Tags: federal budget, finance, politics