Roxanne Appleby
Masterpiece
- Joined
- Aug 21, 2005
- Posts
- 11,231
Pure, if you could ever resist throwing strawmen into your arguments you would be a much more effective debater. While you may find it personally satisfying to slip in little sneers about "republicans" and "randists," it only makes you appear bitter and nasty, and distracts from whatever legitimate points you may have.Pure said:roxanne says,
RA Actually, I think the whole thing is ridiculous.
i'm not sure if you, RA, mean the carbon tax, or the thesis of global warming as a danger. it's a bit surreal to be discussing either--a solution that's ridiculous or an effective solution to a ridiculous, imaginary problem.
i suppose the point is to embarrass environment people and show their insincerity. so much for the 'sincerity' of your proposals in the debate.
BUT, since various forms of 'carbon tax' have been proposed in good faith by conservatives, liberals, and maybe some social democrats, let's look at three basic problems. my point will be that the problems mean that while 'carbon tax' has some validity, it could only be a minor part of a solution to the problems at hand, not the wonderful sword against waste that roxanne claims (or says she does). it has some validity, since taxing things you want to reduce does have some effect, be it on substandard housing or emisions of poisonous gas (Sweden's tax on nitrogen oxides).
Looking over some of the literature on the internet, I see two problems cited, by analysts, and i'll add a third.
1. Lack of (much)incentive for the individual [or taxed unit] to economize
ra says,
When I say "revenue neutral" I mean in terms of the net amount flowing into the treasury, AND in terms of net family income at various income levels. In your example of the two middle income families with similar tax situations, obviously the one with the Honda Pious will come out ahead of the one with the SUV - until the changed incentives causes them to unload the SUV.
so apparently 'neutrality' is to apply to 'income levels', persons aggregated by income level-- what we call a 'tax bracket. as the example shows, an extravagant consumer on the level of 60 K--the fellow with the giant SUV--, is going to suffer from the carbon tax. To put it roughly, that's the upper end of the bell curve of consumption (top 20 percent consumers, in that bracket, of fossil fuel), let's say in the 50-75 K bracket. The honking big SUVS, those mobile homes that you drive from inside, the ATVs, the boats.
HOWEVER, for the *average* person, lets say the middle 60% of the consumers in the bracket, *there is no change*. what they pay in carbon tax is refunded on income tax. This person has little real monetary incentive to change. Roxanne points out that the tax will be felt, say in a electric bill, where coal has been used. OK, but only the person of that bracket with *exceptional* electric bills are penalized The *average* homes usage in the bracket is going to have 'revenue neutrality. no net tax impact.
2) As the letter below argues, the *amount* of the tax [that would be effective], set by Roxanne at $5, is vastly underestimated. The author below estimate several times that, and points out that Europe has $6/gallon gas [yet overconsumption, by 'green' standards]. Rox proposes only $8, quite affordable for the well off. As the author argues, if one implements the tax at a point where the tax would make a difference, like gasoline at $15-$20/gallon, that is pretty disruptive.
3) I don't believe that the tax as R describes it, is politically saleable, and point 2) above is part of the reason. Further, even at the modest levels, as we see above, the high consumers in each bracket are hit pretty hard. IOW, the top quarter (by consumption) of each upper bracket. So your $250,000/yr lawyer with his private jet, (assuming that's not typical of his bracket) is hit pretty hard.
AND the money goes to the poor and the working poor, to *completely* insulate them from R's $8/gallon [or the author below's $15/gallon gas]. This is a massive income redistribution, if you look at it from one view. This kind of thing isn't popular with Republicans, who've been cutting back the equalization effect of income and other taxes for some time. Roxanne says,
RA The pressure would be on them to pass the thing, and pushing too hard toward using this for wealth redistribution in either direction would blow it up, so the pols would resist those pushes and pulls.
P: This says that more OR less redistribution would be resisted. So the net will remain the same in a plan that is passed. BUT this is unsatisfactory to many Republicans, almost alll Randists etc.; these people hold that that rich are ALREADY robbed to subsidize the poor and want to cut that back further (from the beginning Bush has made), NOT leave it alone as per Roxanne's plan.
What would in fact happen is that Republicans would scrimp on the transfer (since the poor aren't good with money, anyway), shortchange the working poor. Then that obviousl affects the saleability of continuing the plan, once these people feel the pinch. (At which point the Dems rush to their aid, etc.)
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In short, while a modest carbon tax might have a mild effect, the rumors of it potency (floated for whatever reason by roxanne) appear to be unfounded; or unreasonable, given the evidence.
I might add also that Roxanne avoids applying the tax to industry, where it's most needed.
RA your questions about "companies" are not relevent.
It seems logical that those industrial plants using lots of natural gas or coal or oil should be 'carbon taxed' for the same reasons R applies to individuals This is a component of many carbon tax proposals [ R reject its probably because taxing corporations is anathema to the far right, the Randists]. The exact reasoning Roxanne applies to the individual apply even more to wasteful, high carbon emitting factories. They should feel the pinch, and then their owner will start to economize.
THAT SAID, the above objections apply equally--as have been stated by others. 1) there isn't much incentive for the average factory; 2) the level of the tax would have to be *high*, which very much disrupts the some factories finances. 3) it is unclear how the proposals are going to be 'sold' to the owners of wasteful factories, and why they'd want their income redistributed to the very efficient ones.-----
article on the require level of carbon tax.
Which when it comes to the logic of economics already fall short, or are well off the mark. For example, you say a person whose family income is not changed by the offsetting tax increase in one area (the carbon tax) and decrease in another (the income tax) has no incentive to reduce carbon consumption. That is nonsense, because most individuals never stop striving to get ahead, and the way to do that under this model is the reduce carbon consumption and pay less carbon tax. The efforts that currently go into minimizing income tax liability will go into reducing carbon tax liability, and there's only one way to do that - burn less fossil fuels.
If the object is to reduce carbon without hurting individuals or damaging the economy, then your argument about the "rich" not having as much incentive to change their behavior is nothing more than banal envy, the sustenance of class warfare promoters. The reason is, there aren't that many rich people! So the fact that some of them will continue to consume a lot won't matter for overall carbon use. Also on that - DUH!: In any area you think of, the rich are less affected by price incentives. Al Gore's current energy profligacy is a perfect example. In any event, the many changes in the patterns of production that a significant carbon tax would generate will cause the rich to consume less, whether they choose to or not. Finally on this point, if you are bothered so much by classist envy than it overcomes your desire to have a major impact on carbon emissions, then am I not correct to suspect your sincerity and seriousness about the latter? Is your real goal to eat the rich or "save the planet," Pure? And news flash - no matter what policy you adopt the rich will be insulated to some extent. (Actually, the slimiest segment of that class - the rent seekers - will be further enriched by the approach that appears to be your preference, the command-and-control politician's dream scheme.)
Also, where did you get the idea that the tax would not apply to industry? Every ounce of oil, pound of coal and cube of natural gas would be subject to the tax, whether it was burned in your gas guzzler or in a manufacture's furnace. That's just the direct effect. The indirect affect is the change in consumer demand - SUV plants would shut down, and econobox plants would ramp up. There would be many more fundamental changes than that obvious one.
Finally, your assertion that the energy tax wouldn't really affect consumption unless it was at some absurdly high level, like $100/gallon. Oh really? Everyone reading this who would NOT be motivated by $8 gas and $500 monthly heating/cooling bills to get a more efficient car, efficient furnace, efficient home improvements - raise your hand. Hmmm, I don't see any hands going up, Pure. You disagree? OK, make it $12 gas and $700 montly bills - any takers? And these are only superficial effects - the tax causes a profound and fundamental shift in consumer preferences that perhaps the radical enviros can appreciate better than you, Pure, because they have a good understanding of the "energy footprint" of everyday activities (or whatever they call it.)
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