Originally published on Forbes.com Oct 11th, 2012
So, is a vote for Jill Stein a vote for higher prices at the pump ? The short answer is yes. Here is what the Green Party Platform says:
Establish a system of carbon taxes on all fossil fuels, to begin to reflect the real environmental cost of their extraction and use. Carbon taxes should be applied as far upstream as possible, preferably when possession of the carbon-bearing fuel passes from extraction (for example, coal mine; oil wellhead or tanker; gas wellhead) to the next entity in the supply chain (for example, coal shipper or utility; oil refiner or importer; natural gas pipeline). Offset potential regressivity for lower income individuals via the Green Tax shift that lowers income taxes and/or other approaches.
Unlike some other portions of the platform, the carbon tax is something the candidate is really on top of. Here is what she has to say:
In case you skipped or had trouble with the video, one possible scenario for a carbon tax would be a revenue neutral fee and rebate program. Prices would be higher at the pump and in the multitude of other things that might be affected by a carbon tax but the entire amount, presumably net of some administration costs, would be distributed.
If you were a hermit living in a cave and walked to town once a month to pick up your rebate check, you would almost definitely come out ahead. On the other hand there are people like me. When the cost of parking is factored in there is no question that even without the carbon tax it would be economical to take the train into Boston. In the interview, I mentioned my friend Jonathan who always needles me about it. My son interned for him this summer and Jonathan won him over to the train. Still. If the carbon tax was not the proverbial hit over the head with a two by four, I would come out behind. It would be even harder on people who live in less densely populated areas.
Evaluating the winners and losers does not answer whether it is a good idea. There is a saying attributed to Daniel Moynihan – You’re entitled to your own opinions. You’re not entitled to your own facts. Of course when it comes to this issue some people have their own facts regardless of their entitlement. Assume for the sake of argument that this whole climate change being associated with burning fossil fuels is not some sort of eco terrorist plot to get us all freezing in the dark. With that assumption, which I acknowledge gives some people heartburn, the carbon tax or something like it makes a lot of sense. The major problem with free markets, which are in many ways wonderful things, is externalities. If there are costs that are not being absorbed by the market participants, free markets produce less than optimal results.
So you think this is some whacky Green idea ? Why don’t you listen to what former Republican Congressman Bob Inglis has to say:
According to him it is a conservative idea. I’m going to have start studying this MBTA map.
You can follow me on twitter @peterreillycpa.