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Climate Alarmism as a Means of Wealth Redistribution
The Guardian reports on a letter from NASA’s James Hansen to Barack Obama giving Hansen’s views on the direction climate policy should be taking. The main sentence of interest is:
The idea is to tax carbon at source, then redistribute the revenue equally among taxpayers, so high carbon users are penalised while low carbon users are rewarded.
This is derived from page 5 of a pdf Hansen published at Columbia University’s website on 29th December. Extracts from the letter are reproduced below with the relevant sentences in bold:
A rising carbon price is essential to “decarbonize” the economy, i.e., to move the nation toward the era beyond fossil fuels. The most effective way to achieve this is a carbon tax (on oil, gas, and coal) at the well-head or port of entry. The tax will then appropriately affect all products and activities that use fossil fuels. The public’s near-term, mid-term, and long-term lifestyle choices will be affected by knowledge that the carbon tax rate will be rising.
The public will support the tax if it is returned to them, equal shares on a per capita basis (half shares for children up to a maximum of two child-shares per family), deposited monthly in bank accounts. No large bureaucracy is needed. A person reducing his carbon footprint more than average makes money. A person with large cars and a big house will pay a tax much higher than the dividend. Not one cent goes to Washington. No lobbyists will be supported. Unlike cap-and-trade, no millionaires would be made at the expense of the public.
The tax will spur innovation as entrepreneurs compete to develop and market low-carbon and no-carbon energies and products. The dividend puts money in the pockets of consumers, stimulating the economy, and providing the public a means to purchase the products.
A carbon tax is honest, clear and effective. It will increase energy prices, but low and middle income people, especially, will find ways to reduce carbon emissions so as to come out ahead. The rate of infrastructure replacement, thus economic activity, can be modulated by how fast the carbon tax rate increases. Effects will permeate society. Food requiring lots of carbon emissions to produce and transport will become more expensive and vice versa, encouraging support of nearby farms as opposed to imports from half way around the world.
The carbon tax has social benefits. It is progressive. It is useful to those most in need in hard times, providing them an opportunity for larger dividend than tax. It will encourage illegal immigrants to become legal, thus to obtain the dividend, and it will discourage illegal immigration because everybody pays the tax, but only legal citizens collect the dividend.
“Cap and trade” generates special interests, lobbyists, and trading schemes, yielding non productive millionaires, all at public expense. The public is fed up with such business. Tax with 100% dividend, in contrast, would spur our economy, while aiding the disadvantaged, the climate, and our national security…
H/T NewsBusters
January 4th, 2009 at 3:32 pm
I don’t think Al is going to like this plan.
January 5th, 2009 at 4:28 am
Would agree with Rick, Ca—- I think Al Gore likes lining his pocket too much