Congressman Proposes Tax + Citizen’s Dividend
|August 1, 2014||Posted by Staff under Environmental, Politics|
This 2014 excerpt of the New York Times is by James K. Boyce of the University of Massachusetts, Amherst.
Representative Chris Van Hollen, Democrat of Maryland, plans to introduce legislation that would require coal, oil, and natural gas companies to buy a permit for each ton of carbon in the fuels they sell. Permits would be auctioned, and 100 percent of the proceeds would be returned straight to the American people as equal dividends for every woman, man, and child.
The state of Alaska has been paying dividends since 1982. That’s when the Alaska Permanent Fund, the brainchild of Gov. Jay S. Hammond, a Republican, began to pay dividends from oil royalties based on the principle that the state’s natural wealth belonged to all its people. The biggest payout came under Gov. Sarah Palin.
The number of permits initially would be capped at the level of our 2005 carbon dioxide emissions. This cap would gradually ratchet down to 80 percent below that level by 2050. Prices of fossil fuels would rise as the cap tightened, spurring private investment in energy efficiency and clean energy. Energy companies would pass the cost of permits to consumers in the form of higher fuel prices. But for most families, the gain in carbon dividends would be greater than the pain. And that doesn’t count the benefits of cleaner air and a cooler planet.
The outsize consumption — and outsize carbon footprints — of the richest 10 percent of Americans means that they’ll furnish a similarly high fraction of the carbon dollars generated by household spending on gasoline, electricity, airplane trips, and so on. For these households, the dividends won’t outweigh the costs. But the affluent can afford to pay for their emissions.
The bill’s main political weakness is that no one stands to make a killing on it. The bill’s main strength is that it protects the incomes of ordinary Americans as it protects the planet for their grandchildren.
Ed. Notes: A better reason to share the raised revenue is that the atmosphere is not some overarching dumpsite but a major part of the commons. It has an economic value and that value belongs to all of us, not to the class of polluters.
Not just the atmosphere’s value but all parts of nature with value should be shared — even surface land. People have an equal right to Earth, so residents should pay land dues into their community treasury and get back rent dividends. That way, each citizen would compensate and be compensated by every other citizen.
Were this geonomic system in place, then what need would we have for taxes and subsidies? Not much. We could lose the worst of them and enjoy a far more efficient economy along with all the benefits that follow from an extra income from the worth of Earth.