Even though the carbon tax fell by the wayside a few years ago, it should be seriously considered as a policy measure in any deals involving the fiscal cliff. First of all, it falls in line with the President's acceptance speech about needing to deal with climate change, and there is a stronger political will for such a carbon tax now.
And also, what makes the carbon tax attractive is that it is not a tax raise upon the American people, but on polluters.
So it might make Republicans in the House and the Senate more amenable to it as a source of revenue. After all, it was Republicans who had initially proposed the carbon tax themselves.
In fact, a recent report by the Congressional Research Service, suggesting a $20 per ton tax on carbon emissions could halve the U.S. budget deficit over time.
Such a tax would generate about $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 report said.
A handful of former Republican policymakers - ones most likely to reject new or higher taxes as a matter of principle - has been touting its potential to raise revenue for a cash-strapped federal budget.
The carbon tax was initially a proposal that was supported by members of both parties, and given Hurricane Sandy's effect upon the East Coast, it now has a greater chance of being considered as a part of any deal. It also helps ease Republican concerns about getting revenue. Even though the White House
may not directly propose a carbon tax, I think that Members of Congress should propose this.
If any of you are making phone calls to your Members of Congress, such as Rep. James Clyburn, Nancy Pelosi, and Steny Hoyer regarding any deal-making, you can propose this as an alternative to hurting Americans who depend on earned benefit programs such as Social Security and Medicare.