Keep Carbon Tax in the Mix of Solutions

Keep Carbon Tax in the Mix of Solutions (Detroit Free Press – Editorial)

In a powerful endorsement of a carbon tax, the Detroit Free Press stated in a July 12, 2007 editorial:

A tax on carbon dioxide emissions, phased in gradually but relentlessly, would be the most transparent and efficient step this country could take in the search for energy independence and reductions in many emissions, including carbon dioxide. It would send a hugely important signal to the markets — for cars and for alternative energy sources such as windmills and solar collectors, in particular — that innovation and conservation are essential.

While some have characterized Congressman Dingell’s recent support of a carbon tax as a cynical ploy to undercut constructive efforts to reduce carbon dioxide emissions, the Detroit Free Press editorial states:

Dingell said by phone Wednesday that a gas tax would likely be phased in, and carbon tax revenue would be distributed among Medicare, Social Security and various conservation funds. "Truthfully, I believe this is the way to go, and I’m willing to lose some skin over it," he said. But he expects fierce opposition.

The editorial, reflecting automaker concerns about the impact on automakers of steps to reduce greenhouse gases, accurately notes that:

Consumers are going to pay for any measures taken to reduce greenhouse gases and shift away from dependence on foreign petroleum. But most politicians choose instead to hide the costs by placing expensive demands on automakers and by dispensing subsidies for alternative fuels, such as ethanol, that become a hidden tax burden. A cap-and-trade system for emissions also would have disguised costs.