The economic stimulus bill generated a lot of talk about taxes. As we work our way out of this economic mess, we need innovative, effective solutions to taxes – not just short term band-aids. We need to move in a new direction. Here’s a big idea: let’s phase in a carbon tax, to protect our planet and reward productive investments.
How does this work? Raise the cost of carbon-based fuels through some form of federal tax on carbon emissions; these new revenues should be fully or partially offset by cuts in the income, payroll, or corporate income taxes.
In other words, let’s tax the things we don’t want and use the revenues to reduce taxes and costs on inventors, investors and innovative new businesses in the development of alternative energy sources. By permanently cutting taxes on workers and investors, we can help the economy recover through growth and higher employment- and have a cleaner, greener environment.
It’s extraordinary that groups ranging from the Sierra Club to the American Enterprise Institute recognize that a carbon tax makes sense for America. If you are up for a good read, check out: http://www.brookings.edu/~/med…
And, to shamelessly plug my own writing on the topic, http://finance.yahoo.com/exper…
In addition, let’s ensure that the stimulus bill starts this process, by shifting the transportation funding formulas to increase the amount that is dedicated to mass transit. Historically, only 20% of federal funding goes to transit with the remaining 80% focused on automobile infrastructure. This is out of whack with the future. By investing more in transit, and removing various administrative hurdles, we can create more sustainable communities throughout the nation.
I know that the transition to a carbon tax will not be easy, but our current path is reckless and short-sighted. It must change.
I’m running for Congress in the 5th District in Illinois, because more than at any other point in my lifetime, good policy truly matters. I’m an economics expert who can bring big ideas – and practical solutions – at a time this is needed most.
Our national and local economy is the single most important issue in this election. We’re all scared. We’ve lost jobs. We’ve watched our retirement and college savings shrink, or disappear. We put our trust in our financial system, and it robbed us. Congress must act to stop the downward spiral and- more importantly- take steps to make sure this can never happen again. The carbon tax is one tool in our toolbox that can fix our energy and environmental issues for the long term.
taxes tied to doing harmful things always make me leery. If all the businesses who are getting taxed for polution but then lessen it to save money and the environment, well now we’d have to turn around and raise their taxes back up again, which in the long run doesn’t make us Dems look very good.
I actually think a revenue-neutral carbon tax can and will be embraced by folks on both sides of the aisle. In fact, more and more scientists, economists and opinion leaders are coming out in favor of a carbon tax. What we need are more politicians willing to stop talking about political expediency and to have an open and honest debate about the best way to solve the climate change crisis. And while I agree with you that a carbon tax is the better option for a myriad of reasons (to avoid the evasion and market manipulation inherent to cap and trade, for one) the first step has to be an open debate.