Everything intelligent that I have seen written about the ill-fated cap-and-trade legislation that is weaving its way slowly through Congress and will likely be watered down even further (How is it possible to water down something that is already very weak?) says that a gas tax would be a far more effective and efficient way to alter consumer behavior. The arguments against cap-and-trade are numerous and are outlined in an interview with Thomas Crocker, who first thought up the idea (http://online.wsj.com/article/SB125011380094927137.html).
The challenge, of course, is to make a tax politically viable, because attaching the word ‘tax’ to any policy proposal in the U.S. is equivalent to killing it off. One of the best answers I have seen in terms of how to make such a tax palatable is to offset any revenue raised with a rebate of some form to consumers. If consumers understand that the net effect of the tax is zero, then the case against the tax loses much of its potency.
The article in the url below presents a comprehensive approach to achieving these goals. It is innovative, flexible, and a good start, which, of course, is why no-one in Washington is likely to pay any attention to it.
Take care
DavidBill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
How to make a petrol tax politically viable
By Michael Levine and Mark Roe
991 words
7 July 2009
USA Ed1
09
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