NET-ZERO GAS TAX

AS SERIOUS OBSERVERS EXPECT from him, Charles Krauthammer has produced a thoughtful analysis of the "Net-Zero Gas Tax" (January 5 / January 12). His discussion of negative "externalities," possibly higher price elasticity of demand for gasoline, the terrible inefficiency of current and likely future energy regulation, and the need to offset the energy tax to maintain revenue neutrality, is impressively rigorous.

Critics may always assert that the devil is in the details. Even though he offers provisions for those not paying payroll taxes because they are receiving unemployment compensation or Social Security, what about those who are retired but living entirely off of their savings and investments? Take the 60-year-old, blue-collar or middle-class couple who do not own a second home in the Hamptons but who were looking forward to spending some of their early years of retirement camping and traveling in their RV. The Net-Zero Gas Tax is adding yet another tax to the class of Americans who use this form of recreation but who will not receive the offsetting payroll tax reduction. The negative effects on the RV industry, private campgrounds, etc., may be devastating. Incidentally, their industry trade associations also have studies showing that the carbon footprint from typical RV vacations is less than for similar destination trips that include fly, rent-drive, and hotel.

Troubles with the details of implementing this proposal can be addressed, but are they likely to be by the incoming liberal Congress and administration? In the political climate of the next few years, the real danger of this proposal is that it is a once-in-a-generation opportunity for conservatives to cede to liberals that social engineering through tax policy is morally fine. This would accelerate the process by, among other things, putting the final nail in the coffin of any relationship between funding sources and expenditures. The gas tax would no longer have even a minimal relationship to road and bridge expenditures but would be commingled with Social Security. Would the annual benefit statements from the Social Security Administration reflect the gas tax revenues? However this is handled, it would almost certainly further erode the linkage between individual FICA taxes and benefits, thus causing them to have an even greater resemblance to welfare benefits. The slippery slope that this Net-Zero Gas Tax proposal puts us on may lead to the complete elimination of FICA funding of Social Security and the substitution of general revenue funding. Discussion of this larger issue should not be rushed.

LARRY FIALA
Madison, Wis.

THE CASE FOR A SIGNIFICANTLY higher gasoline price is very strong, as you note, and, as you also note, it is hard to get support for raising the price by a tax rather than by higher crude oil price. You are on the right track to propose earmarking the tax for the more politically acceptable purpose of reducing payroll taxes.

But, I suggest splitting off part of the increase, perhaps 10 cents per gallon, for repairing and improving highways and bridges. That would be an economic stimulus, but would be funded out of the gas tax rather than deficit spending.

The biggest share should go to public funding in support of energy efficiency and sustainability-research and development, grants and subsidies, public investments in energy efficiency such as CAFE, alternate fuels and energy sources such as ethanol or hydrogen, public transportation, carbon emission reduction and sequestration, etc. These all have support as good things to do to help achieve energy independence and sustainability. Funding them out of a tax on motor fuels would double the effectiveness of the program-money wisely spent will reduce dependence on fossil fuels, and sending the bill to motor fuel consumers will give them the incentive to cooperate with the programs and also to take their own steps to reduce fuel consumption.

WALT BUTCHER
Pullman, Wash

. CHRISTIANITY IN ASIA

MAX BOOT AND RICHARD BENNET'S "Treading Softly in the Philippines" (January 5 / January 12) was, as usual, excellent. But one quibble. They describe the Philippines as "the only Christian country in Asia."

Of those in South Korea who claim a religious identity, most say Christian, and, if we include them in Asia, Papua New Guinea and East Timor are both massively Christian, as are several of the small countries of the western Pacific. And, of course, Russia is the largest country by area in Asia. PAUL MARSHALL
Hudson Institute
Washington, D.C.

SUFISM IS KEY

THE KEY FACT IN ADDRESSING Abd el-Kader is that he is a Sufi. This is mentioned only in passing in Roger Kaplan's review ("Algeria's Patriot," January 5 / January 12). If Sufism, its tolerance, and slight mysticism were the Islamic norm, there would be no "Clash of Civilizations." I am surprised that this was overlooked.

CLAUDE VARNER
Memphis, Tenn.