Author: Stephen Johnson / Source: Big Think
- A bipartisan group of renowned economists has proposed the U.S. implement a carbon tax.
- The tax would increase until climate goals are met, and all proceeds would be given back to the people in equal lump-sums.
- Recent research suggests that a majority of people would support a carbon tax policy that redistributes proceeds back to citizens.
A bipartisan group of renowned economists has a plan to help the U.S. cut its emissions and help stop rising global temperatures: Implement a carbon tax that gives all proceeds back to the American people.
In a letter published by the Wall Street Journal on January 16, the group — which includes all living former chairs of the Federal Reserve, and former White House economists from both parties — argues:
- A carbon tax is the most cost-effective way to reduce carbon emissions at the scale and speed that is necessary.
- A carbon tax should increase every year until emissions reductions goals are met.
- All revenues should be returned directly to U.S. citizens through equal lump-sum rebates.
Although the letter doesn’t specify what the tax rate should be, the economists are arguing for an economic plan that would put the American fossil fuel industry on a rather clear path to extinction. Traditionally, carbon tax proposals have been met with derision or skepticism by many conservatives, who argue that such plans would stifle competition and result in lost jobs.
What’s novel about this proposal is that it’s endorsed by respected and credentialed Republicans. It’s also not hard to see how Americans who lean to the right might be amenable to a carbon tax whose revenues go to their pocket rather than the government, as the letter states:
“To maximize the fairness and political viability of a rising carbon tax,…
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