Re: Has Ms. Applebaum noticed the recession?
by
Philidor
07/14/2009, 12:19 PM #
So if carbon tax revenues are neutralized by higher individual and dependent reductions, then the tax won't provide revenue for other purposes like, say, health care. That's okay, but it's worth noticing.
Worse, though, you're making the assumption that people who make more money and so benefit less from the deductions willfully generate more emissions, and so should be penalized. That may not be true, in part because wealthy people have more discretion to reduce their emissions. The inescapable result is a redistribution of money from those with more to those with less, individual carbon use being unmeasured and so irrelevant. That redistribution is a separate policy debate.
And worst, by the time the money reaches the income tax refund, the damage of higher energy costs has been done. Every day, every item required or wanted will cost more. That's going to damage the economy even if a lower tax withholding or higher refund allows paying off of some accumulated debt.
As worthy as your goals might be, they're very likely to produce unintended (and intended) damage. The admitted intention of taxing carbon is to cause people to use less of it. And that means harming how people live and the economy which supplies what they use. A carbon tax is too ruthless for me.