Headline: Oil and gas companies must pay more to drill on federal land under new Biden admin rule.
Conservatives are squawking as usual, but this is a rare example of government applying the correct incentives. Government desperately needs to function more like a business.
Businesses charge individual customers for individual services. This leads to more responsible use by the customers and better quality by the business.
When government makes everything free, there’s no obligation to use resources responsibly, and no obligation by the “landlord” to treat the tenants well.
User fees ALWAYS work better than fungible taxes.
States already charge oil companies HEAVILY for drilling and running wells. Okla and Texas and Alaska make a large part of their revenue from Ad Valorem taxes, which are a form of VAT. Teddy Roosevelt established the system of national parks and reserves EXPLICITLY to earn a profit for the government, relieving the burden of non-users.
Polistra's Mill 