The question is: Does the government need more money?...or do we simply want to incentivize cleaner energy use? If the government were to hold its revenues constant - gradually phasing in a carbon tax while proportionally reducing income tax and corporate tax, the net effect would be a win-win.
The government would collect the same amount of revenue, the carbon tax would discourage fossil fuels and raise the cost of business, but a corresponding decrease in income & corporate taxes would compensate by raising spendable income.
A large obtacle may be the accounting and paper work behind the scenes to balance the budget, but come on - we're smart people. Let's figure this out. Any thoughts? Please discuss in the comments.
CATEGORY: Political / Economic / Energy
IDEATION: April 28, 2009