Skip to comments.U.S. carbon tax could halve deficit in 10 years: report
Posted on 09/26/2012 3:38:58 AM PDT by Sub-Driver
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.
"Lower-income households, in particular, would face a disproportionate impact if revenues were not recycled back to them in some fashion," the report said.
(Excerpt) Read more at news.yahoo.com ...
The same lying sacks that said Obamacare would save money...
Revenue recycled back to them? I don’t want to talk to people who think like this anymore.
Oh, by the way, if you make something more expensive you’ll get less of it. What the recent recession did to revenue a carbon tax will do it better.
Sure it would... if you don’t count the corresponding drop in revenue when said tax kills the economy.
Note it’s also a redistribution plan.
Their math doesn’t even add up. Since when is $122 Billion half of $1 Trillion?
How could anyone be foolish enough to believe this nonsense?
Another thinly veiled wealth redistribution plan. I’ve got a better idea...
How ‘bout we cut all the BS, non-Constitutional crap the Feds have taken on, and we then pay down the debt with the surplus generated by that model?
Zero based budgeting in place of the sophistic baseline model in use today.
Cut the depts of Ag, Energy, Education, Labor, HHS.
Phase out Medicare and Social Security.
Get the Feds back within the confines of the Constitution and let the free market take care of the rest.
We see Europe crashing and burning from policies like this and STILL they want to take us down that road. Savage is right; liberalism is a mental disorder.
This wouldn't even reduce the annual deficit by half much less the national debt. The annual deficit has averaged 1.3 trillion a year in the era of Obama. This scheme would only reduce that by about one tenth. This debt would still be increasing by over a trillion dollars a year. What universe does this author live in?
The CBO lied like the Democrat lackeys they are when they said that ObamaCare would not cost a trillion taxpayer dollars. After it passed, they “revised” their estimate to almost TWO TRILLION dollars. This office should be eliminated because they have never given a correct estimate on any entitlement that Democrats wanted.
And kill the economy with higher energy prices, while enabling the Statists.
No thanks. Get spending under control.
So will compounded inflation at roughly 7%.
The inflation process is pretty much already in place and will play out as it has before for hundreds of years
Why don’t these insane just shut up and go away? Lack of taxation is NOT the country’s problem
A Carbon Tax would fund the Global Elite Government and only that.
Not a chance in h... Given more money, the jerks in Washington would just find more unconstitutional xxxxx to squander it on. No more money, work with what you get, or less.
Liberals believe in this claptrap.
Liberals believe that if you raise taxes by a certain amount, that you end up with that amount of additional revenue in taxes. They don’t or won’t understand that a tax will change people’s behavior.
They also don’t understand how things are related. For example, this carbon tax could cause people to use less energy, which would mean less tax is collected than predicted. Also, consumers paying higher energy bills have less money to spend on other things, so that there is less economic activity in retailing, etc. If new taxes are imposed. But liberals who want a carbon tax to fight global warming don’t understand how these things work.
Unfortunately we have liberals in charge right now.
Obamugabe said HE was going to cut the deficit in half in four years.
More left-wing arguments why a new tax is good for the economy.
The sad thing is, that some people actually believe this rubbish.
Anybody thinks that Obama is going to make low-income people actually pay for their shared sacrifice (ha!)? We'll see the same pictures about people like the Macon Obama supporter complaining about her gas/electric bill standing in front of her big screen plasma, X box, et al "defiantly aksing who gonna take care of these here bills?"
Who actually will pay for it are middle income workers - those people who work to pay net income taxes. By the time they end up trying to get at wealthy peoples' money, they will have long moved it out of their reach. Obama will be forced to tax the middle bracket, and to take their 401Ks their private pensions, their IRAs, their Roth's, etc.
If Obama wins the election, I'm going to draw out my 401K before he can get it, and I'm going to do it before Dec 31 before the new rates kick in.
More blatant leftist propaganda in favor of the global warming HOAX based tax. It is just a pretext for the elites in Washington to take more of our money and squander it.
“U.S. carbon tax could halve deficit in 10 years: report”
Yes, and collectivizing our farms will increase grain output, comrades.
Acorn had now become Acorn international and "global economic and social justice" is their goal.
This is just one of their means.
This is one of the most stupid things I ever read.
Who the Fudge do they think will pay this tax.
ME —you snot booger. ME and the Americans who pay for everything.
They want to give the welfare and entitlement crowd a pass and make ME and the American taxpayer pay more and more and more until they frickin bleed us dry.
Not only that, but their Math is almost as bad as mine. I am no whiz at Math, but their figures are BS.
Where is that face palm?
Grrr. I left a jurisdiction that pays carbon taxes.
In July, former Republican Congressman Bob Inglis launched a think tank to promote a plan to raise taxes on fossil fuels while cutting income tax, a concept previously supported by former Democratic Vice President Al Gore.
Democratic Congressman Jim McDermott last month introduced a Managed Carbon Price (MCP) bill to cut and put a price on carbon emissions, while returning some money to consumers and using the rest to reduce the deficit.
I'm really glad we gave Inglis the boot in the GOP primary, I see he's still hanging out in DC with his friends.
“U.S. carbon tax could halve deficit in 10 years: report.”
Politicians will find some way to spend anything saved, putting us farther in debt with higher taxes.
A $50 tax on abortions could.....wait a minute....
“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.”
Thanks for the laugh.
There would be no reduction, we all know that government would spend the new inflow of money and not use to reduce anything!
The price of energy would also increase dramatically. Of course probably not much impact on a president that owns a $2M home and pay golf over a 100 times a year...
The price of energy would also increase dramatically. Of course probably not much impact on a president that owns a $2M home and plays golf over a 100 times a year...
*A "sustainable" job is one that generates a profit for the employer. A job that does not generate a profit for the employer ceases to exist when the employer goes bankrupt. A government job is not a "sustainable" job, since it ceases to exist when all sustainable employers cease to exist.
Close the Departments of Energy, Education and Commerce.
They produce nothing.
The problem isn’t revenue it’s on the spending side. They would just increase spending.
Carbon Tax would halve production, which would double the deficit.
Why do they pretend liberals would apply additional income to the deficit?
And assuming Bambi doesn’t rack up more debt (which changes the numbers doesn’t it?)
No doubt the Yahooligans (pro-Obama yahoo commentators) are agreeing and repeating this nonsense like a mantra
“Lower-income households, in particular, would face a disproportionate impact if revenues were not recycled back to them in some fashion,” the report said.”
That’s a pretty fancy way of saying: From each according to his ability, to each according to his need.
Of course, the report assumes that there will be no future spending increases.
Wouldn’t this be ‘raising taxes on the middle class’?
And wouldn’t it hurt the poor and struggling disproportionally?
And of course, the premise on which Carbon taxation is based is fraudulent (Global Warming).
Of course the case could be made that soon, only the rich will have cars to tax carbon on, and we will all be using firewood to heat our homes, but then they might carbon tax that as well...
Lìberalism is a path to total power. Power is incomplete i.e. not total if there are competing sources of power in a society. Wealth beyond an ability to barely feed one’s self and family is such a source of power. It is not a mental disorder though it is amoral and ethical disorder of the gravest sort. Power is a natural ambition of human beings. The Free Market and Religion (Judeo-Christian based, primarily) is defense against total power seeking.
205 higher revenue begets at least enough higher expenditure to account for 150% of the additional revenue. That seems to be a political Law.
Hey! I’ve got a great idea!
Let’s tax gasoline at $5 a gallon!
It’ll reduced the deficit by half in two years!
Note in the article: "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."
THEY've done their math, by 2020 when carbon tax reaches $144 billion, it will be half of the US Debt. Along with the completely wrecked economy.
But that would not be our biggest problem in that situation then, would it?