More on Gas Taxes

The San Francisco Chronicle has an article today about the high price of gas and how it needs to be higher. I couldn't agree more.

Here is a quote that I found particularly irksome...

Jonathan Williams, an economist at the nonpartisan Tax Foundation in Washington, observed that consumption has remained fairly steady in the United States despite rising pump prices.

"It's highly doubtful that raising gasoline prices by $1 per gallon would have any significant impact on demand," he said.

Who cares? Yes, it would be great to reduce consumption (and I think in the long run it will), but a gas tax is still smart public policy as long as we make the tax revenue neutral and decrease payroll taxes.