World Oil Tax

According to The Economist the United States has the world’s second lowest petrol tax at $.039, with the exception being Mexico which subsidizes petroleum. Most countries especially now with “green” energy becoming more mainstream have a tax of at least $3 as is the case in Germany, Britain, Finland, France, Norway and Turkey. These countries having high taxes on gasoline and oil is significant because it shows that governments throughout the world are making a concerted effort to give incentives to the consumer to stop using oil and gas as frequently. To the contrary the fact that the United States has such a low tax helps to explain the trend of American consumers driving more frequently and people buying more vehicles defined as “gas guzzlers.”

The notion of having such a low petrol tax raises the question of whether the United States should raise it in order to provide further incentives for the United States consumer to become less reliant on oil and gas. In addition if the United States Government were to implement this it would lead to more money available for the Federal Government to have to spend instead of continuing to borrow from China and Japan, thus raising the national debt. Raising petrol taxes could also show that the United States Government is worried about climate change and would be a step in the right direction by imposing higher taxes. In addition, higher taxes would show that President Obama is backing his pledge to make the United States a more energy efficient country.
Sources:http://www.economist.com/node/17101124?story_id=17101124