Energy Taxes
The Naked Economist (aka, Charles Wheelan, PH.D.) suggests that the US should make a revenue neutral switch to carbon taxes.
The idea is pretty simple. Taxes affect behavior. If the governments switches taxes from corporations and income to a carbon tax, people would, on the margin, work more and drive less. Our "addiction to oil" would slowly move into detox and we would be less dependent on certain distasteful foreign governments. People would pay more for gas and electricity, but they would theoretically get the same amount back in their income taxes; at $4+ a gallon, people should buy fewer SUVs, stop suburban sprawl, commute less, pollute less and buy more widgets.
I've heard more serious proposals for gas import taxes, since they take a chunk out of OPEC's monopoly profits. Nonetheless, I would sign myself up for this consumption tax. As long as it gave larger tax breaks to the poor (who spend more on gas) and the transportation industry (which is more susceptible to gas price hikes), it has real potential.
That doesn't mean it will ever happen.
Wheelan also thinks that a carbon tax is a winning platform in 2008. I have to disagree on this point, although I'm sure someone will put it at the front of their campaign. Whoever uses the idea, it certainly won't be a Republican banking on Big Oil money. It also wouldn't survive a hard smear campaign. I like the idea, but i'm not holding my breath.
The idea is pretty simple. Taxes affect behavior. If the governments switches taxes from corporations and income to a carbon tax, people would, on the margin, work more and drive less. Our "addiction to oil" would slowly move into detox and we would be less dependent on certain distasteful foreign governments. People would pay more for gas and electricity, but they would theoretically get the same amount back in their income taxes; at $4+ a gallon, people should buy fewer SUVs, stop suburban sprawl, commute less, pollute less and buy more widgets.
I've heard more serious proposals for gas import taxes, since they take a chunk out of OPEC's monopoly profits. Nonetheless, I would sign myself up for this consumption tax. As long as it gave larger tax breaks to the poor (who spend more on gas) and the transportation industry (which is more susceptible to gas price hikes), it has real potential.
That doesn't mean it will ever happen.
Wheelan also thinks that a carbon tax is a winning platform in 2008. I have to disagree on this point, although I'm sure someone will put it at the front of their campaign. Whoever uses the idea, it certainly won't be a Republican banking on Big Oil money. It also wouldn't survive a hard smear campaign. I like the idea, but i'm not holding my breath.
posted by PWN at 7:36 AM
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