Saturday, August 7, 2010

Carbon Taxes, Clean Energy, WPA style Jobs, and a "Two For-One"

by joedemocrat

I used to oppose new environmental and energy taxes. I always believed the climate crisis was very real, but was cautious about any bill that would cause higher energy prices. I understood if people and industries had to pay the true cost of carbon based energy, we would both conserve energy and develop clean energy alternatives. But the economic populist in me just didn't like it. In my mind, we all had to use energy meaning such taxes would be regressive and hurt poorer people.

I was also worried about the political ramifications. I was in 7th grade when Jimmy Carter won the Presidency. I remembered the public reaction when he encouraged people to conserve energy. This caused me to prefer direct and aggressive clean energy subsidies (often abused by special interests - ethanol). I also knew more taxes, except on the rich, doesn't poll well. This may be changing with regard to energy and cap and trade systems- Nate Silver points out the cap and trade bill polls fairly well.

But I've been reading. And I've been learning - such taxes are not per se regressive and can even be progressive if structured correctly.



continued at Daily Kos...