Earth Equity News

Carbon Revenue Recycling is Focus of Capitol Hill Briefing. By James F. Handley, Carbon Tax Center, September 17, 2008. "At least one Washington politician dares to say 'tax' out loud -- a carbon tax, no less. Representative John Larson (D-Conn.) headlined a Capitol Hill panel discussion Tuesday and came out swinging for a revenue-neutral carbon tax. Larson, a member of the Democratic House leadership and the tax-writing Ways and Mean Committee, called carbon taxing the most effective way to curb greenhouse gas emissions. Addressing a briefing organized by Clean Air - Cool Planet and the Energy and Environment Study Institute, the five-term Congressman invoked his constituents at Auggie & Ray's Diner in East Hartford: 'They know climate protection comes with a price tag -- they want transparency up-front so they know what to expect and can plan ahead'... Either a carbon tax or the auctioning of permits under a carbon cap-and-trade system would generate huge streams of revenue which would come under the jurisdiction of Ways and Means. The Committee has scheduled a hearing [today], Sept. 18, on revenue recycling, and Larson will be on hand, presumably putting the spotlight on the American Energy Security Trust Fund Act he introduced in August 2007... Larson called a carbon tax 'simple, efficient, straightforward and effective' and said it will be a boon to the economy if the revenue is recycled to reduce or eliminate distortionary taxes Shanan Alper, an analyst for the research firm. Following Larson, a politically diverse panel of economists -- Robert Repetto, Robert Shapiro, Terry Dinan, and Ken Green -- discussed ways to maximize the 'double dividend' -- benefits to climate and to the economy from recycling revenue from either a carbon tax or the auction proceeds of cap-and-trade."