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What if the United States ends up with a carbon tax?


 

The American and Canadian administrations are apparently in agreement that the two countries need to harmonize their carbon pricing schemes, but what if, as the likes of Matthew Yglesias, Ezra KleinKevin Drum and Michael Bloomberg have argued this week, the United States ends up pursuing a carbon tax? Klein says it’s might be the best option.

At this point, the politics of climate change are dismal. But the reality of the budget situation makes new taxes inevitable. Among the few promising routes left for climate hawks is convincing the political system that if we need more taxes, a carbon tax makes more sense than a VAT. Because we will need more taxes. Perhaps the fiscal crunch can do what climate science could not.

Recall here that, despite his warnings that a carbon tax would both “screw everybody” and possibly unravel the country during the 2008 election, the Prime Minister did not entirely dismiss the possibility of such a policy when asked about harmonizing environmental agendas with the United States during 2009 interview.


 

What if the United States ends up with a carbon tax?

  1. I believe that implementing the carbon tax is a great idea! This is because it is a progressive tax system that takes money from
    large corporations and potentially gives it to programs that help the people
    who are less fortunate in the society. Hence, since the richer tend to pollute
    more, this tax is a way for wealth to be more evenly distributed across the
    country.

    It will further encourage the producers of coal to mitigate its use and push them to think of other alternative or more renewable sources of energy. The added cost of carbon tax that incorporates the environmental damage of pollution will also make people value conservation of energy and factory owners to cut down on the production of these noxious gases. As an added bonus, the revenue raised through this carbon tax can be used to help fund social programs like free healthcare clinics and after school fitness programs. This funding could be especially desirable in the current economic situations because it can cover the government’s budget deficits.This ultimately leads me to believe that Australia was right in
    implementing the carbon tax and so should the other countries because the pros by far outweigh any potential cons. Don’t
    you think so?

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