Did Lugar really support a one dollar per gallon gas tax?? Yes… it was an idea coming from the not-really-conservative Charles Krauthammer, which Lugar endorsed in the Washington Post. This was supposedly a tax on gas which would discourage gas usage, but would be offset by a cut in the payroll tax. Lugar claimed that every working American pays this tax.
Pharmer’s understanding is that every American, who is employed by another, pays this tax. This leaves the self employed to be screwed by the gas tax with no offset. This latter group has been abused too much by the government. Also the payroll tax is the funding vehicle for social security. Is it a good idea to raid the mechanism for paying social security (which is already in the hole) without reducing social security outlays first?
Lugar’s solution was for the government to make a sin tax for gasoline use, to discourage our dependency on oil, and to encourage fuel alternatives. Always a government tax solution for every problem …… he has been in Washington too long.