Carbon tax: Asking the easy questions

Three Democrats in Congress are asking for answers to easy questions about a carbon tax (like what should the rate be and what should we do with the money).  But they aren’t facing up to this problem:  If I pay tax because my manufacturing plant uses carbon to make stuff and my foreign competitor pays no tax, how does America level the playing field?

At least they don’t overlook indexing – they go beyond it (Bravo!)  with the second of their three questions:

“How much should the price per ton increase on an annual basis?  The draft contains a range of increases from 2% to 8% per year for discussion purposes.”

http://democrats.energycommerce.house.gov/index.php?q=news/waxman-whitehouse-blumenauer-and-schatz-release-carbon-price-discussion-draft

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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