Last month, environmentalists cheered as California launched a cap-and-trade program, but talks of a federal carbon tax raised concerns about double taxation.Needless to say, this is probably what the environmentalists want, as businesses have yet another reason to leave the once-Golden State.
The San Francisco Chronicle reports that while the chances of a federal tax on carbon emissions being adopted are still remote, California state officials are worried enough to have started discussing the prospect.
According to the Brookings Institution, a $20 per ton carbon tax that rises 4 percent annually would raise $150 billion per year over ten years and reduce carbon emissions 20 percent below 2006 levels by 2050.
However, a study from the Institute for Energy Research’s Robert Murphy found that a carbon tax would make the tax code more convoluted and hinder economic growth.
Monday, December 10, 2012
California, the state so nice they might tax you twice: