Comments on: Carbon Tax or Cap-and-Trade? Don't Forget "Neither" http://www.masterresource.org/2009/01/carbon-tax-vs-cap-and-trade-dont-forget-neither/ A free-market energy blog Fri, 30 Jul 2010 00:52:54 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: TheSkyIsFalling http://www.masterresource.org/2009/01/carbon-tax-vs-cap-and-trade-dont-forget-neither/comment-page-1/#comment-3809 TheSkyIsFalling Mon, 28 Dec 2009 09:37:32 +0000 http://masterresource.org/?p=336#comment-3809 Point one I guess covers it but I would state clearly that liberty depends upon not feeding government with more taxes. The more you feed it the stronger it becomes and the more money it has to play with to regulate more aspects of individuals’ lives and economic activity. One further point that does not appear to be covered – what about the cost of having such a tax removed? Backing out of such a complicated octopus like tax with tentacles everywhere would be extremely complex and disruptive when it is found that CO2 emissions are either not the significant player we are told they are or even if they are that it is too costly in terms of standard of living to tax (costs exceed benefits). I assume nearly everyone would prefer a higher standard of living and easier life (if not contact me and I will give a bank account for funds to be deposited) to the problem of turning up an air conditioner a notch – and that is assuming CO2 has a positive forcing effect greater than 1 on temperature – this has not been proved as yet and I doubt it will be. What if we survive as a species into the next ice age – and we are due for one now. Will a carbon tax make sense then? Unfortunately like a junky on heroin it will come to depend on its carbon tax fix and won’t be able to just do without the revenue when the time comes. Another tax will need to replace it and the overall economy contracts with compounding effects over time as worthwhile activity is channelled into mandated useless activity. With our present economy we may be say 50 years away from a completely new technology that makes current energy sources look like kids stuff but slowing the economy may push that discovery out a century or more depending upon the effects. Would taxing horse “emissions” in the 1700’s have sped up the development of a reliable internal combustion engine!? I somewhat doubt it. Charles Point one I guess covers it but I would state clearly that liberty depends upon not feeding government with more taxes. The more you feed it the stronger it becomes and the more money it has to play with to regulate more aspects of individuals’ lives and economic activity.

One further point that does not appear to be covered – what about the cost of having such a tax removed? Backing out of such a complicated octopus like tax with tentacles everywhere would be extremely complex and disruptive when it is found that CO2 emissions are either not the significant player we are told they are or even if they are that it is too costly in terms of standard of living to tax (costs exceed benefits). I assume nearly everyone would prefer a higher standard of living and easier life (if not contact me and I will give a bank account for funds to be deposited) to the problem of turning up an air conditioner a notch – and that is assuming CO2 has a positive forcing effect greater than 1 on temperature – this has not been proved as yet and I doubt it will be. What if we survive as a species into the next ice age – and we are due for one now. Will a carbon tax make sense then? Unfortunately like a junky on heroin it will come to depend on its carbon tax fix and won’t be able to just do without the revenue when the time comes. Another tax will need to replace it and the overall economy contracts with compounding effects over time as worthwhile activity is channelled into mandated useless activity. With our present economy we may be say 50 years away from a completely new technology that makes current energy sources look like kids stuff but slowing the economy may push that discovery out a century or more depending upon the effects. Would taxing horse “emissions” in the 1700’s have sped up the development of a reliable internal combustion engine!? I somewhat doubt it.

Charles

]]> By: Falling carbon permit prices in Europe: Threat or menace? « Knowledge Problem http://www.masterresource.org/2009/01/carbon-tax-vs-cap-and-trade-dont-forget-neither/comment-page-1/#comment-170 Falling carbon permit prices in Europe: Threat or menace? « Knowledge Problem Wed, 21 Jan 2009 20:46:05 +0000 http://masterresource.org/?p=336#comment-170 [...] Rob Bradley reminds us that the policy choice isn’t just between cap-and-trade and carbon taxes. [...] [...] Rob Bradley reminds us that the policy choice isn’t just between cap-and-trade and carbon taxes. [...]

]]> By: Paul Roberts http://www.masterresource.org/2009/01/carbon-tax-vs-cap-and-trade-dont-forget-neither/comment-page-1/#comment-169 Paul Roberts Sun, 18 Jan 2009 22:10:14 +0000 http://masterresource.org/?p=336#comment-169 We must be well aware of the competitive impacts of both cap-and-trade and direct taxation on CO2 emissions. Although the incoming president has spoken of tax cuts, the draconian effects of both cap-and-trade and taxation would offset and potentially overwhelm the benefit of any reduction in income tax rates. Furthermore, either approach would adversely impact the competitive status of U.S. industries. Industry mix differs dramatically from nation to nation and increasing production costs for U.S. industries would simply improve the position of other nations. We can take a deliberate, measured approach to reducing CO2 emissions but both cap-and-trade and taxation pose the risk of sudden and dramatic changes in costs. We must be very cautious of the actions we take. We must be well aware of the competitive impacts of both cap-and-trade and direct taxation on CO2 emissions. Although the incoming president has spoken of tax cuts, the draconian effects of both cap-and-trade and taxation would offset and potentially overwhelm the benefit of any reduction in income tax rates.
Furthermore, either approach would adversely impact the competitive status of U.S. industries. Industry mix differs dramatically from nation to nation and increasing production costs for U.S. industries would simply improve the position of other nations.
We can take a deliberate, measured approach to reducing CO2 emissions but both cap-and-trade and taxation pose the risk of sudden and dramatic changes in costs. We must be very cautious of the actions we take.

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