Trakar
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- Feb 28, 2011
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The Christian Science Monitor CSMonitor.com / Text
The beauty of a carbon tax and its exemption for the poor
By Paul Boudreaux / January 10, 2013
...The policy arguments for a carbon tax are compelling. Economists have convinced the environmental community that market-oriented systems, as opposed to inflexible commands, are the best way to regulate. The simplest and most efficient way to change peoples behavior is to tax them; everyone is then encouraged to look for efficient ways to avoid the taxed activity...
...A carbon tax would hit big polluters, most notably electrical power producers. They would be encouraged to eschew carbon-laden coal for relatively cleaner natural gas, or even cleaner sources of energy. But they would not be mandated to do so; each producer would make judgments based on its own criteria and supply structures...
...A simple exemption, however, could make the tax burden much lighter for poorer Americans, while at the same time encouraging even greater conservation. The idea is simple: Each household would be exempted from the tax for a modest amount of electricity per month or year; the exemption would be most effective if the system also imposed only minimal usage charges for electricity below the cutoff. The system would recognize almost all households need to use some electricity, but that consumption beyond the minimum would be taxed...[/quote]
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The beauty of a carbon tax ? and its exemption for the poor - CSMonitor.com
The beauty of a carbon tax and its exemption for the poor
By Paul Boudreaux / January 10, 2013
...The policy arguments for a carbon tax are compelling. Economists have convinced the environmental community that market-oriented systems, as opposed to inflexible commands, are the best way to regulate. The simplest and most efficient way to change peoples behavior is to tax them; everyone is then encouraged to look for efficient ways to avoid the taxed activity...
...A carbon tax would hit big polluters, most notably electrical power producers. They would be encouraged to eschew carbon-laden coal for relatively cleaner natural gas, or even cleaner sources of energy. But they would not be mandated to do so; each producer would make judgments based on its own criteria and supply structures...
...A simple exemption, however, could make the tax burden much lighter for poorer Americans, while at the same time encouraging even greater conservation. The idea is simple: Each household would be exempted from the tax for a modest amount of electricity per month or year; the exemption would be most effective if the system also imposed only minimal usage charges for electricity below the cutoff. The system would recognize almost all households need to use some electricity, but that consumption beyond the minimum would be taxed...[/quote]
(read rest at Link)
The beauty of a carbon tax ? and its exemption for the poor - CSMonitor.com