2013-03-19


It’s Lose-Lose vs. Win-Win-Win-Win-Win. Commentary by Thomas L. Friedman, NYTimes, March 17, 2013. “It strikes me as crazy that one of the obvious solutions to our budget, energy and environmental problems — the one that would be the least painful and have the best long-term impact (a carbon tax) — is off the table. Meanwhile, the solution that is as dumb as the day is long — a budget sequester that slashes spending indiscriminately — is on the table. Shrinking the tax deduction for charity is on the table. Shrinking Social Security, Medicare and Medicaid for the poor are on the table. But a carbon tax that could close the deficit and clean the air, weaken petro-dictators, strengthen the dollar, drive clean-tech innovation and still leave some money to lower corporate and income taxes is off the table. So the solutions that are lose-lose and divisive are on the table, while the solution that is win-win-win-win-win — and has both liberal and conservative supporters — is off the table…

 “Alas, right now both sides are trying to inflict maximum pain on the other, rather than framing the debate as: 'Here’s the world we’re living in; here’s what we need to thrive; and, if we cut and tax here, we can invest in these 21st-century growth engines over here.' Our goal is not to balance the budget. It’s to make America great.”


Could Republicans Ever Support a Carbon Tax? Bob Inglis Thinks. By Brad Plumer , WashPost,  March 14, 2013. “The conventional wisdom around Washington is that Republicans will never, ever support a carbon tax to address climate change. And it’s not hard to see why. Right now, they really seem to loathe the idea. Take Rep. Steve Scalise (R-La.). The chairman of the Republican Study Committee held a news conference Wednesday to introduce a resolution opposing any new national tax on carbon emissions. He’s lined up plenty of support among conservatives and industry groups, from Grover Norquist to the National Federation of Independent Business. “A national carbon tax would devastate an already struggling American economy, force the cost of gas at the pump to jump even higher, and kill millions more jobs here at home,” Scalise said. End of discussion, it would seem.

“Yet if you ask Bob Inglis of the Energy & Enterprise Initiative, he thinks Republicans can be persuaded to back a carbon tax. It will just take time. And Inglis, a former Republican congressman from South Carolina, thinks he knows how to sell the idea… Inglis starts with the notion that conservatives will only accept a tax on carbon emissions if every dollar of revenue is used to cut taxes elsewhere — say, corporate taxes or income taxes. ‘We have to be absolutely clear that we’re not trying to grow the size of government,’ he says. And the environmental pitch has to be calibrated right: ‘We’re not talking about regulations or EPA action,’ he adds. ‘All we’re talking about is accounting for the true cost of the fuels we use. And I should mention that we’re not talking about apocalyptic visions of climate change. What we’re talking about is reasonable risk avoidance, the kind that our friends in the insurance industry are now taking cognizance of.’”

George Shultz Pushes for Carbon-Tax. By Carolyn Lochhead, SanFranChronicle, March 8, 2013. “Republican eminence grise George Shultz addressed a packed room on Capitol Hill Friday [March 8] to press for a carbon tax. A Californian now at the conservative Hoover Institution at Stanford University, Shultz…  of just two people ever to hold four Cabinet posts… Carbon tax revenue under his plan would be remitted to consumers in the form of a ‘carbon dividend check.’”  

Democratic Lawmakers Ask for Feedback on Proposed Carbon Emission Fee. By Brad Plumer ,  WashPost, March 13, 2013. “On Tuesday [March 12th], four Democrats in Congress unveiled a brand-new proposal for a carbon tax. The set-up is simple: The U.S. government would slap a fee on fossil-fuel emissions and refund the revenue back to the public. But there’s a twist: The precise details of the carbon tax have yet to be thrashed out. The four lawmakers are soliciting public comments for how big the tax should be and how best to rebate the money. The proposal is being put forward by Reps. Henry Waxman (D-CA) and Earl Blumenauer, as well as Sens. Sheldon Whitehouse and Brian Schatz.”

As Momentum Builds Toward Tax Reform, Lobbyists Prepare for a Fight. By Jerry Markon, WashPost, March 9, 2013. “While the standoff over sequester spending cuts and other budget battles have been grabbing headlines, momentum has quietly been building toward a once-in-a-generation push to overhaul federal taxes, an effort that would likely affect nearly every family and business. Tax reform edged closer to center stage in recent days after President Obama opened conversations with Republicans over a deal to tackle the federal deficit… Lobbying over the tax code has more than tripled since Obama took office, disclosure records show. And the pace of activity accelerated toward the end of last year amid the fight over the ‘fiscal cliff,’ as lawmakers from both parties sought to turn the struggle over tax rates into a discussion about overhauling the tax code… Some of the heaviest lobbying has come from the oil and gas industry, which has been targeted by Obama and other Democrats for what they consider preferential tax breaks.”