Alex_G

Greg Mankiw: Swap the Payroll Tax for a Gas Tax

Great idea, wrong target. The more workable is to initiate a large gas tax, then increase the dollar amount in each tax bracket. This gives the tax back instantly to every tax payer, who can then decide to save the tax break by using less fuel, or spend it on the more expensive gas.

We have seen gas usage go up since the price has come crashing down.

Raising the price and giving 90% of the tax back would keep the money in the US, providing a GDP multiplier, and would reduce world demand, which would keep the base price of the input low. Use the other 10% to fund alt energy research.