Al Gore has a new solution for high gas prices — it’s called payroll neutrality. According to the former VP we should eliminate payroll taxes and make it up with “pollution taxes.” So instead of taxing your paycheck, Gore would tax the hell out of your house via the power you use to heat, cool and run it. I’m sure that would really help the poor who probably pay more heating their house in the winter than the money taxed out of their paychecks. But don’t worry, Gore says this is “revenue neutral,” which assumes an inelasticity in human behavior that doesn’t stand up to reality. Simply put, if you reduce a tax on one thing and raise it on another, you change behavior on the part of the taxpayer. No word on whether “carbon offsets” would count as a tax write-off under the Goracle’s scheme.
Update (Ian): I watched the full show and can’t believe I didn’t come across this gem: Larry King Asks Al Gore to Join Jimmy Carter in Slamming President Bush.