U.S. carbon tax becomes part of fiscal cliff debate
A carbon tax on big polluters may have support from both sides of the political aisle if it is presented as a source of revenue.
As the country edges closer to the fiscal cliff — tax increases and spending cuts to come in 2013 — discussion of the U.S. carbon tax on big polluters is back on the table, Reuters reports.
Although few have offered a direct link between climate change and Hurricane Sandy, which devastated the Northeast late last month, many have begun talking about the connection between climate change and extreme weather events, Reuters reports. The link has reignited conversation of the tax and may make the idea of a carbon tax easier to swallow for some.
A carbon tax is a way to charge power plants, oil refiners and other emitters of greenhouse gases per ton of carbon dioxide they release.
The chances such a measure would effectively address pollution and climate change are not promising, but Retuers reports some analysts say the tax would be more attractive if it was presented as a source of revenue. A recent report by the Congressional Research Service suggested a $20-per-ton tax on carbon emissions could decrease the U.S. budget deficit by half.
The tax could bring in close to $88 billion in 2012, increasing to $144 billion by 2020, the report said. This would cut U.S. debt by between 12 percent and 50 percent within a decade, the report said.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.