[Graeme]

Albert, Martin, and ... Ralph? Solving the real energy crisis

$this->bbcode_second_pass_quote('', 'T')he solution is straightforward and politically appealing: ramp up steep taxes on fuels, and tax-shift or rebate the revenues progressively.

Tax-shifting is the phasing out of existing, onerous, regressive taxes, such as state sales taxes and federal social security taxes, as the fuel taxes are phased in.

Rebating is the pro rata distribution of the fuel tax revenues to the public -- along the lines of the Alaska Permanent Fund, which once a year sends identical checks to all state residents from the state's North Slope oil royalties.

In either case, individuals and families that use less energy than average would get back more in tax reductions or rebates than they would pay out in fuel taxes. Since most poor households drive less, fly less, live in smaller homes, and have fewer appliances and electronic devices than richer households, most of them would benefit monetarily from this tax plan -- even those that drive clunkers, have drafty houses, and own hand-me down refrigerators.

Here's what progressive fuel taxation could accomplish:

Slash use of fossil fuels by instilling across-the-board incentives to improve energy efficiency and creating the market pull for renewable biofuels, solar, and wind energy.
Drive down the before-tax price of energy by reducing demand. (Excise taxes on any commodity always cut its before-tax price; this is Econ 101.) This would curb oil profits without the need for a complex, difficult-to-enforce excess-profits tax.
Make polluters pay, while rewarding with cool cash every action that conserves fossil fuels.
Diminish the political power of the oil/energy industry, as sales volumes and earnings plummet.
Dry up the financing of "oilgarchies" from Africa to the Middle East to Indonesia -- and Washington, D.C.
Inject that money into our economy, providing more and better jobs at home instead of funding violence abroad.

[lawnchair]

$this->bbcode_second_pass_quote('', 'S')ince most poor households drive less