The Oil Drum: Gas Tax Increases…Destroy Demand NOW!

We should institute a $0.50-1.00 gas tax. This would help reduce demand and show that markets work. The tax would allow individuals to make decisions on how best to deal with higher gas prices. This would unleash the technical innovations that the U.S. is capable of and find alternatives to high oil as well as improve efficiency. The high price caused by the tax, even after demand is reduced and oil prices moderate, would show that the economy can cope with higher energy costs.
A lot more after the jump to The Oil Drum.