A Carbon Tax Should Be Included in a Deficit Reduction Deal A
carbon tax will address greenhouse gas pollution and bring in
revenue December 10, 2012 The carbon tax is a "two-fer" that
would give businesses and households a better price signal to
guide their decisions about energy use and raise revenue as part
of a balanced deficit-reduction package. So, if you think that
we should address the environmental damage caused by greenhouse
gas pollution, and if you think that revenues have to be part of
any sustainable agreement to stabilize deficits and debt, the
carbon tax is a good idea. A carbon tax is not most people's
first choice (except among economists). Fear of the "tax" label
was surely one reason why policymakers pursued "cap-and-trade"
in their initial efforts to address greenhouse gas pollution.
Many environmentalists are not as confident as economists that
businesses and households would change their behavior
sufficiently under a tax to make a difference; they prefer the
certainty about the amount o