A Novel Approach to Climate Change Policy: A Tax Shift

Reader Comments
Back to article

I enjoyed this article, and I could buy into the overall concept. I really like the idea of lowering taxes on things we want, like employment, money in our pay checks, etc.
Where I see a problem is in the political tendency to never reduce a tax, even to replace that revenue with a different tax. They either keep the former and add the latter, or reduce the former, add the latter, then later increase the former.
The insidiousness of the income tax was started by constitutional amendment (and a very controversial one at that). It seems that the first step toward implementing a carbon tax, or any other tax, would be to amend the constitution with the following: A. A maximum income tax rate on any person, corporation, etc., not to exceed 20%. B. ANY other taxes levied at the federal level would have to be sun-setted every 10 years. If the people believe any extra tax--such as a carbon tax--to be a benefit to society, they can push their representatives to renew the tax once a decade.
Rough thoughts for now, but we can't continue down this road where every tax has eternal life and the rates go mostly one way...UP.

Roger Duval of WA 12:05PM July 05, 2010

would anyone want to stop Global Warming? I think I'd rather picnic under a palm tree than a glacier. And, I know for certain more food grows where it's warm than on frozen tundra - I suppose that's one of the reasons they grow plants in greenhouses and not the deep freeze.
No, I'm thinking the return of the ice is the real train wreck for civilization. I think folks should focus on the fact that the earth is currently in an "interglacial" period - and exactly what that implies.

R.L. Schaefer of CA 12:15AM April 02, 2010

I propose a new 100% tax on all welfare entitlements. We can give these fine folks housing money, food money, transportation money, healthcare money, etc. That way we can feel good about ourselves for being so compassionate. Then, we simply tax it back from them at 100% (taxes being all good and stuff) Viola' solves all manner of societal ills.

Un-ordinary Genius 7:08PM April 01, 2010

This plan is better than Cap and Trade. I would suggest that the plan include a "floor" price for carbon. There would only be a tax if the market price for carbon was below a set level that would increase over time. For example, if oil spiked to $200 per barrel next year, there would be no tax. Using a set price for carbon makes it much easier to make decisions based on known costs vs benefits.
The first problem with this tax is how to distribute the tax collected back to individual taxpayers. The Democrats would probably use the tax to redistribute wealth (more money to lower income folks). The Republicans would probably favor the same amount for each taxpayer leading to charges of favoring the wealthy. The second problem with this tax is that is visible as a tax. Cap and trade just forces user of carbon to increaases prices. Oil companies would raise gasoline prices and then be blamed by politicians for doing so.

Bob of TX 5:58PM April 01, 2010

Hunter - you've apparently pre-washed your brain against any penetration of new ideas. First, this is a revenue neutral tax that you have the power to reduce, by cutting pollution. Second, it cuts payroll and/or income taxes - good for jobs and people. Third, it's not cap-and-trade - it's a simpler, more elegant alternative.

Bill Shireman of CA 3:43PM April 01, 2010

...is for developed countries to reduce their populations by imposing a ten-year moratorium on immigration. The US population went from 250 million in 1990 to 300 million in 2005, an increase of 50 million in just 15 years. Environmentalists and economists agree that the US population should never exceed 250 million. Anything beyond that is flirting with danger. Pollution of our water and air will become irreversable. Our cities will become overcrowded. We will suffer an increased dependency on foreign oil. In the event of total economic collapse, there will be a completely unmanageable number of people put out on the street, desperate, angry, a pervasive mob mentality.
The only sure way to heal the economy is to reduce population growth and stopping immigration is the only painless way to do it. It would also help to handle illegal immigration the way Arizona is handling it. The US deals with a lot of problems other countries don't have. Overpopulation is everyone's baby and we're running out of diapers.

Heather Czerniak of WI 9:22AM April 01, 2010

People don't realize if Electric companies have to comply with new regulation standards, then they just turn those costs to comply to their rate payers. In the end it costs the electric users more money!

Pdub of MO 3:13AM April 01, 2010

I thought your analysis was splendid--balanced, insightful and concise. James Hansen, and also the "Lincoln Plan", advocate using at least some of the carbon tax revenue for public dividends, but this nuance. Overall your approach, and the presentation of it, are hard to beat.

Huon of WA 10:59PM March 31, 2010

You people never give up,unreal.That's just what we want is more taxes and even more gov.control,ARE YOU REALLY THIS NUTS??? FEES EQUAL TAXES.Cap and trade =job loses.Please be honest.

Hunter of WI 10:50PM March 31, 2010