A Carbon Tax: That's Right


In response to the current cap and trade legislation on the table, two gutsy Republicans are calling for a carbon tax: "Republican Lawmakers Back Carbon Tax (Yes, That's Right).". Indeed, that's right: triple entendre intended.

We on the Right have become so knee-jerk about our loathing of taxes that we are losing legitimate opportunities to use taxes and tax hikes. And we've become so incensed by apocalyptic warnings about global warming that we've forgotten all the other negative externalities that can be helped solved by a more proper price on carbon. And we're so nervous about associating with a tax in the midst of the worst recession in two generations that we're willing to allow our current and unsustainable way of doing business to continue and given no break to those who have gotten ahead of the curve and retooled themselves for a post-petroleum, environmentally green economy.

So kudos to Representatives Inglis and Flake for sticking their necks on the line. Of course, they will be vilified by both the Left and the Right. Sad, since their stance achieves what the Left wants and is completely true to what the Right is about. Sadly, no good deed, it seems, goes unpunished.

Comments

David Larsson said…
<<"The first axiom of economics is if you want less of something, you tax it," said Flake, a leading fiscal conservative, in an interview. "Obviously, we want less carbon, so we tax it." ... Inglis and Flake oppose the cap-and-trade measure, saying it would create a huge federal bureaucracy to regulate the sale and trade of carbon credits — on the heels of catastrophic financial services failures because of lax government oversight.>>

Thanks for the post, Lee. I think Reps. Inglis and Flake make some pretty valid points above, and I agree that they are providing some badly needed leadership for their colleagues on both sides of the aisle. As Lincoln said, "We must disenthrall ourselves, and then we shall save our country."

I'm not clear on how their proposal would affect gasoline (i.e., transportation). Are they talking about increasing gasoline taxes a la Europe? There's an interesting study here about the differences between Germany and Japan in their respective approaches to encouraging the growth of solar power -- lots of cultural differences between their approaches, and I'm sure it will take yet another approach in order to succeed in the USA.
Daniel Nairn said…
I'm glad you keep pressing on carbon tax. Maybe our nation is starting to build the political momentum for something like this. Imposing a carbon tax does not necessarily imply more tax or bigger federal government. It's just a smarter tax.
LH said…
David, thanks for the link - will check out the study you linked to. PS Is there hope that our elected officials will properly value long-term economic and environmental wellbeing if they are forced to win an election every 2/4/6 years just to stay in power? Not suggesting longer terms, just affirming the sentiment of your Lincoln quote and the high bar of humility/leadership needed to uphold that sentiment.

Daniel, thanks for your encouragement. Some days, I think that the "smarter" way of taxing has to be inevitable, and that there are signs of sanity among our elected officials. Other days, I think that we have built our entire lives around way-too-cheap gas and are far too addicted in our behaviors and entrenched in our systems to possibly even think about such a major shift. So is this destined to happen or destined to fail? Stay tuned.

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