Carbon Tax

Carbon tax is taxation placed on citizens and companies for using oil, coal, electricity that would release green house gases. The purpose behind it is to make users pay for the damage they are causing to the environment and others, while also encouraging companies and users to be weary of their consumption of fossil fuels and consider switching to cleaner alternatives. Many individuals are discouraged to switch to cleaner forms of energy because of the cost. However, carbon tax allows for the price of cheaper fuels to rise, encouraging companies with larger carbon footprints to switch to solar or wind energy sources. Moreover, different fuel sources will be taxed based on its heat content; fuel sources with more carbon content is more harmful for the environment therefor will be taxed more. Many supporters of the carbon tax propose tax shifting; which means that federal income tax and sales tax should decrease in order to establish a carbon tax. These taxes don’t necessarily have to be enforced on everyone consuming fossil fuels; some supporters target these taxes towards larger fuel companies that work directly with coal miners or oil refiners, or gas companies. While other supporters suggest that the carbon tax be applied to everyone’s electricity bill.

Carbon tax does not have much support in the United States from our politicians. Bill Clinton once proposed a tax that followed a similar plan, however it passed in the House but not the Senate. Many years later, the effects of global warming have become more pronounced yet many politicians deny its credibility. Many of these climate change skeptics hold this point of view because they receive funding from companies like Exxon mobile or the Koch industries, companies that would be hurt the most from legislations that seek to protect lower green house emissions. These companies have support from many politicians in the republican party, making it difficult for the government to pass any significant legislation that would seek to protect this world.

Sources:

http://science.howstuffworks.com/environmental/green-science/carbon-tax3.htm

What’s a carbon tax?

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