December 4, 2012
POOR SHLUB PROBABLY STILL DOESN'T REALIZE HE WORKED IN A NEOCONOMIC REGIME:
A tax we could learn to love (David Frum, 12/03/12, CNN)
Take three worrying long-term challenges: climate change, the weak economic recovery, and America's chronic budget deficits. Combine them into one. And suddenly three tough problems become one attractive solution.Tax carbon. A tax of $20 a ton, rising at a rate of 4% per year, would over the next decade raise $1.5 trillion, according to an important new study from the Massachusetts Institute of Technology. That $1.5 trillion is almost twice as much as would be recouped to the Treasury by allowing the expiration of all Bush-era tax cuts for upper-income taxpayers.The revenues from a carbon tax could be used to reduce the deficit while also extending new forms of payroll tax relief to middle-class families, thus supporting middle-class family incomes.Meanwhile, the shock of slowly but steadily rising prices for fuel and electricity would drive economic changes that would accelerate U.S. economic growth.The average age of U.S. cars and trucks has reached nearly 11 years, a record.Millions of Americans want new cars. They are waiting for market signals as to what car to buy. They want to know that if they choose a fuel-efficient vehicle, they won't feel silly three years from now when their neighbor roars past them in a monster truck because gas has plunged back to $2 a gallon.
Mr. Frum's hilariously obtuse memoir fretted that W was directionless until 9-11, not recognizing that taxes on income and investments were being reduced, vouchers brought to education and housing, market mechanisms to health, and the push was on for personal accounts in public retirement.
Posted by Orrin Judd at December 4, 2012 8:07 AM