[audio:http://wamcradio.org/EarthWise/wp-content/uploads/2012/09/EW-09-20-12-Carbon-Tax.mp3|titles=EW 09-20-12 Carbon Tax]
As the fall’s elections plays out, we are unlikely to hear much about raising taxes. But, for the moment, let me use the bad word—taxes—to catch your attention.
Both parties acknowledge our Federal government is broke, with more than $16 trillion in national debt. This is likely to stifle our nation’s productivity for years to come. It would be nice to stimulate our economy so that revenues, at existing tax rates, could cover the government services we all depend on—from Medicare and road maintenance to defense and environmental protection.
Environmental scientists point out that we must reduce our carbon dioxide emissions to the atmosphere to prevent global warming. The science behind climate change is accepted by the vast majority of scientists in this nation, and by the governments of nearly all other nations.
So, suppose we taxed carbon emissions from fossil fuels? That would encourage their efficient use. If you wanted to avoid a carbon tax, you would make the transition to non-fossil sources of energy, like wind, solar, and tidal power—reducing our emissions of carbon dioxide. A carbon tax could also generate revenue to run the government.
A new study from MIT suggests that a carbon tax would stimulate our economy and allow the government to lower income taxes, without reducing government services. In the case of petroleum, a carbon tax would help shift us away from foreign energy sources. The MIT study calls a carbon tax a triple win for the nation.
There are costs associated with government services in a free society. But there is no free lunch. A carbon tax is a good way to fill the gap.
Photo, taken on June 5, 2011, courtesy of Takver via Flickr.