I would like libertarians and conservatives to seriously re-think the merits of a carbon tax, when coupled with reductions in the income tax. With regards to global warming, it allows us to avoid a debate over whether global warming is
- Actually happening.
- Actually man made.
- Actually bad.
Second, by proposing to reduce income taxes to offset carbon taxes, it puts the Democrats in a tough spot. (I have also argued the benefits of a consumption tax vs income taxes.) We can make this argument, if global warming is the giant threat you say it is, why wouldn't you reduce income taxes as the price of saving the planet? Are you hypocritical? The countercharge that we are holding the planet hostage to tax cuts, is that we believe that national wealth needs to be preserved to combat the potential crisis.
Finally, Republicans need a serious plan to deal with the negative side affects of burning carbon, I think that just saying no to cap and trade will be insufficient. A carbon tax, because it is simple and predictable will have the lowest impact on the economy and be the least susceptible to log rolling.