Tuesday, August 2, 2011

Tax on Carbon Harms the Poor

The Legal Planet blog has an article by Dan Farber that cites a study that reaches the unsurprising conclusion that the burden of a tax on carbon will fall disproportionately on the poor.  The author concludes that further government action will be needed to ameliorate the effects of the carbon tax (e.g., redistribute the taxes to low wage earners).

One alternative, which the author rejects out of hand,  might be to not tax carbon in the first place. Many have concluded that a carbon tax is more of a problem than an answer, as the Breakthrough Institute has pointed out here and here.

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