What Does Revenue Neutral Carbon Tax Mean

Hansen tells ways means.

What does revenue neutral carbon tax mean. A carbon tax is a tax levied on the carbon content of fuels generally in the transport and energy sector carbon taxes intend to reduce carbon dioxide emissions by increasing the price of fossil fuels and decreasing the demand for them. In its 2008 budget which brought in a provincial carbon tax for british columbians the government of b c. The carbon tax that he proposes reflects the true long term costs of different types of carbon based energy sources such as coal natural gas and oil. By jonathan marshall and robert archer ccl economics policy network the most sophisticated economic models available today tell a consistent story about the likely impacts of levying a national fee on fossil fuels.

Also realizes an opportunity to reduce personal and corporate income taxes. Returning the carbon tax revenues to the public would also make it easier to raise the tax level over time a point made nicely by mcgill university professor christopher ragan in a 2008 montreal gazette op ed and subsequently borne out by the experience in british columbia where a revenue neutral carbon tax was ramped up in four annual increments. That tax remains politically popular and is. James hansen told congress today.

In the form of. A carbon tax raises substantial revenue. While the federal government has insisted the carbon tax will be revenue neutral for the federal government. Carbon taxes are a form of carbon pricing the term carbon tax is also used to refer to a carbon dioxide equivalent tax the latter of which is quite similar.

That s on par with the amount raised by all other excise taxes. His proposal is that it be revenue neutral meaning that the funds raised are returned to the economy through tax credits rather than paying for new government programs. The payment is not a means tested benefit and does not depend on income levels. By designing the carbon tax as revenue neutral b c.

10 fast facts about revenue neutral carbon fees. This reduces the drag on the economy by enabling the government to reduce taxes on desirables such as income and capital and instead impose tax on an undesirable such as emissions. Promised that every dollar raised will be returned to the people of b c. Revenue neutral carbon tax needed to spur clean technology revolution february 25 2009 by james handley a planetary crisis threatening the young and unborn compels a substantial gradually increasing carbon tax with all revenue distributed directly as monthly dividends to each household dr.