Krauthammer is going against (conservative) type here by advocating a large increase in the gas tax, but then offsetting it by lowering the payroll tax an equivalent amount. The idea is clever, and has the benefit of making the payroll tax more progressive while encouraging energy conservation. That in turn will lower the price of crude and the financial windfall that accrues to exporting nations, some of whom -- Krauthammer would say, many of whom -- do not wish us well. While Krauthammer emphasizes the geopolitical advantages of conserving oil, he goes very lightly over the fact that world oil production either has peaked or is about to peak. A post-petroleum world is likely to be very nasty; anything we can do to conserve existing stocks will ease the transition to other sources of energy, virtually all of which require cheap fossil fuel to mine/process/facilitate. Krauthammer's proposal apparently would produce a slight increase in overall revenue, as well, a boon in times of great budget deficits.