Today's WSJ has a strong editorial cosigned by 16 scientists regarding global warming. I'll just say that it asks a number of important questions and it would be very worthwhile to have a deeper debate on this issue.
Whatever your stance is on global warming, this article is worth a read.
Showing posts with label environment. Show all posts
Showing posts with label environment. Show all posts
Friday, January 27, 2012
Friday, May 16, 2008
Environment meets energy meets tax policy
Larry Kudlow blogs to comment on McCain's recently announced carbon cap and trade platform (he doesn't like it, nor should you). What caught my eye was hearing that intelligent people (Greg Mankiw and Al Gore to name a few) are suggesting a carbon tax with proceeds to defray federal income and/or payroll taxes in lieu of the cap and trade system.
I LOVE this idea! Here's why:
-tax efficiency: fundamentally, a carbon tax is a consumption tax, while income is, well, income. When you tax something, you get less of it - shouldn't we create incentive to consume less, and remove disincentives to generating more income?
-transparency: directly taxing carbon will give us all a direct and greater understanding of the cost and environmental impact of all economic activities.
-feasibility: a stand-alone carbon tax would never fly - no one wants to vote for a new tax - but substituting taxes could fly. Likewise, there's no chance that either the payroll or income taxes are spontaneously reduced or eliminated on their own.
-economic impact: just a guess on my part, but I think that a payroll or income tax cut will have a net greater positive on the economy than a tax on carbon consumption.
-and finally, this idea works because frankly, cap and trade - already in use in europe - DOESN'T WORK!
I LOVE this idea! Here's why:
-tax efficiency: fundamentally, a carbon tax is a consumption tax, while income is, well, income. When you tax something, you get less of it - shouldn't we create incentive to consume less, and remove disincentives to generating more income?
-transparency: directly taxing carbon will give us all a direct and greater understanding of the cost and environmental impact of all economic activities.
-feasibility: a stand-alone carbon tax would never fly - no one wants to vote for a new tax - but substituting taxes could fly. Likewise, there's no chance that either the payroll or income taxes are spontaneously reduced or eliminated on their own.
-economic impact: just a guess on my part, but I think that a payroll or income tax cut will have a net greater positive on the economy than a tax on carbon consumption.
-and finally, this idea works because frankly, cap and trade - already in use in europe - DOESN'T WORK!
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With my new friends on the Great Wall of China
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