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U.S. carbon tax could halve deficit in 10 years: report Reuters 2 hrs 10 mins ago
WAHSINGTON, Sept 26 (Reuters Point Carbon) - Imposing a $20 per metric ton carbon tax in the U.S. could reduce the country's budget deficit by 50 percent over the next 10 years, a report by the Congressional Research Service said on Tuesday.
Such a tax would generate approximately $88 billion in 2012, rising to $144 billion by 2020, the report said, slashing U.S. debt by between 12 and 50 percent within a decade, depending on how high the deficit climbs
The U.S. budget deficit has exceeded $1 trillion annually in each fiscal year since 2009, and could rise to between $2.3 trillion and $10 trillion by 2020, according to the Congressional Budget Office (CBO).
Since deficits can lead to reduced savings, higher interest rates and higher levels of inflation, reducing them is a high-priority issue in Washington.
The concept of using a carbon tax to combat the problem has been floated in Congress this year, but it comes with many potential downsides, the report added.
For example, households would face higher energy bills because utilities forced to pay the tax would likely pass the costs onto consumers.
Yeah it's a great idea to raise the price of absolutely everything instead of putting a leash on the fucking rabid dog that is government spending
New York City Mayor Michael R. Bloomberg provided the most recent evidence of that Thursday, announcing his endorsement of Mr. Obamas re-election bid in large part because he is a president to lead on climate change. This issue is too important. We need determined leadership at the national level to move the nation and the world forward, Mr. Bloomberg, an independent, said, while questioning whether superstorm Sandy, which ravaged his city this week may have been the result of global warming. The risk that it might be given this weeks devastation should compel all elected leaders to take immediate action.
Mr. Obama has also received endorsements from the Sierra Club and other environmental groups, maintaining much of the support he cultivated during his first White House run four years ago. That support has held steady despite several high-profile failures and major setbacks, including the failure to get a cap-and-trade greenhouse gas bill through the Democrat-dominated Congress of his first two years in office.
After promising to lead the world in the fight against climate change, Mr. Obama was unable to reach a deal with other world leaders at a much-touted global summit on climate change in Copenhagen in 2009. He was able only to cobble together a general statement of principles. Perhaps because of those setbacks, Mr. Obama has allowed climate change to be largely absent from the presidential campaign, though other factors have also played a role.
A struggling economy has overshadowed the issue throughout the presidents first term, and that reality has extended to the contest between Mr. Obama and Mr. Romney. In a recent interview with MTV, the president flatly admitted he hasnt made as much progress as he had hoped, and also conceded the issue hasnt made it into the spotlight of the campaign. Were not moving as fast as we need to, Mr. Obama said. Im surprised [climate change] didnt come up in one of the debates.
Read more: Still hoping
A major tax study currently being sponsored by the U.S. Treasury will give environmental activists a powerful new weapon in their campaign to alter the entire American economic and social landscape in the name of halting climate changeincluding the possible levying of new carbon taxes.
That campaign is bound to intensify in the aftermath of Nov. 6s presidential election, regardless of who wins the race, as the nation faces the challenge of deficit reduction and tax reform that will be required to overhaul the countrys over-strained finances. Environmental advocates and others are likely to raise such innovative mechanisms as carbon taxes and major shifts in tax rates and incentives as part of the processand the impending study may well provide them with important ammunition.
Under the bland title of Effects of Provisions in the Internal Revenue Code on Greenhouse Gas Emissions, the $1.5 million study is being carried out under the auspices of the National Academy of Science (NAS). Originally planned to take two years, the ambitious project aims to take an inventory of the U.S. tax code in terms of the effects of its most important provisions on the emission of carbon dioxide and other greenhouse gas emissionsa huge and complicated exercise in environmental and economic modelling.
The study itself will not be available until after the election. Originally slated for completion in September of this year, its publication has since been postponed until the first quarter of next year.
Read more: Eco-Taxes? Study Financed by U.S. Treasury Will Link Tax Code to Carbon Emissions | Fox News
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