Newest Club On the Block - "Tax Free ULSD"

Amity Shlaes on the Mankiw-inspired Pigou Club boomlet. I think she comes to the right conclusion. I'll stick with Milton Friedman on this one, "I am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible." In fact, if anything we should be cutting taxes on the fuels and technologies that burn cleaner. We have just embarked on the era of Ultra-Low Sulfur Diesel but the uptake of diesel vehicles in the consumer market remains an open question. We should make ULSD fuel free of all taxes. Consumers would flock to vehicles with this more efficient and cleaner technology. Maybe we should have a "Tax Free ULSD Club." Yeah, that's the ticket. (In fact we should be doing the same thing for hybrid vehicles, reduce taxes on them. Consumers would have incentives to use the cleanest technology and politicians would be deprived of gobs of new tax revenue to spend unwisely as they are programmed to do.) So, Join the Club!

UPDATE: Mankiw says Shlaes gives a fair treatment. Let's have Shlaes be on Romney's team too.