The Dingell Life

Michigan Rep. John Dingell drafts a carbon-tax bill

Posted at 3:09 PM on 27 Sep 2007

Michigan Rep. John Dingell (D) has drafted a carbon-tax bill and posted a summary to his website to solicit public feedback. In its current form, Dingell's legislation would phase in over five years a $50-per-ton tax on carbon and a tax of 50 cents per gallon on gasoline and jet fuel (after five years the tax would be indexed to inflation). The bill would also phase out tax deductions for homes over 3,000 square feet. A carbon tax is beloved by economists and other wonks as the most transparent, efficient means of cutting greenhouse-gas emissions. Voters, however, tend to hate the idea, and thus most politicians do as well. The 81-year-old Dingell, who has served in Congress for 52 years and chairs the powerful House Committee on Energy and Commerce, has been accused of pushing "political poison" in order to torpedo other climate bills that include boosts in CAFE standards. He denies it, but then again, he says this: "I'm trying to have everybody understand that this is going to cost and that it's going to have a measure of pain that you're not going to like." The man sure knows how to excite voters!

sources: Associated Press, Detroit News, Detroit Free Press
comment on the bill: Summary of Draft Carbon Tax Legislation
see also, in Gristmill: Dingell opens the door
see also, in Grist: An interview with John Dingell

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Comments: (1 comment)

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A good step - needs "Earth Inheritance"

Directly taxing carbon would be the best way to reduce the use of fossil fuels and generate an explosion of new resource conserving technologies. I believe we could reach the so-called 2050 goals in 10 years with proper incentives such as the carbon tax.

However, to be politically acceptable and fair to low and middle-income citizens, there should be reductions in payroll taxes.

A further step would entail an "Earth Inheritance" provision that sets up Environmental Trust Funds that provide equal dividends to all. Such a dividend could be administered through the Social Security Administration to supplement individual retirement accounts, health savings accounts, education accounts and funds for purchasing insulation and other resource conserving technologies.

Green tax shifting is an incredibly fruitful way to meet the economic, social and environmental challenges that we face as a civilization. It is extremely important that all voters understand the benefits of Green tax shifting.

Please read "One Answer to Global Warming: A New Tax" by Harvard economist N. Gregory Mankiw to understand why fuel efficiency standards and carbon trading are bad ideas compared to taxing carbon. And then (let's all) do something about it.

http://www.nytimes.com/2007/09/16/business/16view.html

www.taxshift.org

by geoark at 8:38 AM on 01 Oct 2007

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