Inglis Virtual Hearing Opening Statement

U.S. Rep. Bob Inglis (R-SC) gives an opening statement regarding his proposed Revenue-Neutral Tax Swap, while also inviting expert testimony in response.

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News & Politics

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• Bob
• Inglis
• virtual
• hearing

[ccljean]

Thank you for linking economic recovery and carbon tax.

Suggestion: Rather than increase the carbon tax annually based on inflation, increase it by $10/ton per year for 5 years. Then evaluate whether the tax is having the desired effect of reducing ghg emissions and adjust it accordingly. Ratcheting up the tax will level the playing field for new energy technologies, leading to rapid growth in this economic sector.

Also, change the name of the bill to The Job Creation and Carbon Reduction Act

[jhubermn]

An earlier commenter pointed out that the revenue from the carbon tax will, hopefully, decrease over time as we begin emitting less CO2. To deal with that problem, I recommend that the bill contain a provision that, when carbon tax revenue begins to decrease, Congress consider levying taxes against other environmental pollutants/problems with the goal of keeping payroll taxes low (or abolishing them). Let's tax what we don't like (pollution), not what we like (work)!

[sandyssanders]

This is an initiative who's time has come. I first heard about it reading "Natural Capitalism" and it made complete sense. Only a hit like this will force environmental reform because they stand to reap a huge windfall by eliminating carbon.

My advice #1) Eliminate completely all payroll tax and roll it into the carbon tax and free the working class from subsidizing the wealthy.

My advice #2) Read "Natural Capitalism" for a ton of other ideas.

[DCLeithauser]

I think the idea is good. A variation might be, instead of reducing payroll taxes, to reduce taxes on green energy sources like wind and solar. That is, use the income from the carbon tax to reduce the tax on renewable energy sources, giving them a tax holiday. This would not only be revenue neutral, it would be energy tax neutral, so it would have less effect on energy prices. It would be fairer to energy users (keeping energy prices the same) and stimulate green energy directly.

[rbmjk]

This is an excellent approach. I think that an increased gas tax should be thrown into the mix.

[uoftdrone]

This is a critically important bill. I was very involved when a similar attempt that tried and failed in Canada last year. Two lessons learned:

1. Know in impact of the bill on CO2 emissions- One of the most effective (false) allegations from critics in Canada was that there is no guarantee this effort will reduce CO2 emissions. It will, and there are ways of estimating it. Commission a reputable study to estimate these impacts

[uoftdrone]

2. Initial year carbon tax should be smaller, say $6/ton, and ramp up linearly for the first few years. In Canada, opponents alleged this "tax on everything" would cause a price spike for the average family(despite the fact it was revenue neutral) . $6/ton should roughly translate to less that $100/year or 25 c/day for the average person - far less if you are are just starting with fossil fuels - not a huge price spike fear mongers will lie about. Make this point clear before they do.

[thanksbetotap]

Three concerns:

1) Gradually phase in the taxes.

2) Businesses will kill this unless they receive back their proportional share of burden.

3) Use the absolute best empirical figures on optimal carbon taxation, and review them frequently after legislation is (hopefully) passed.

[bjk214]

2/2: @thartwork1

I second your idea for additional "local" modifiers such as reduced property taxes, but I think that if implemented, these modifiers should be re-evaluated and probably reduced over time.

[bjk214]

1/2: I join previous commenters in welcoming debate and progress on this issue!

@mattpross: Though the tons of carbon emissions will hopefully decrease, the tax per ton will go up. It all depends on how quickly emissions are mitigated. The tax rate per ton could be re-evaluated periodically (every 3 years) to compensate for tax revenue shortfall/surplus.