Subject: | [climate justice now!] Making the Case for a National Carbon Tax (Congressional Briefing) |
---|---|
Date: | Thu, 11 Dec 2008 07:13:59 -0500 |
From: | Horner, Kate <[log in to unmask]> |
To: | Lidy Nacpil <[log in to unmask]>, Nicola Bullard <[log in to unmask]> |
CC: | CJN! <[log in to unmask]> |
References: | <[log in to unmask]> <[log in to unmask]> |
FYI...
http://action.foe.org/pressRelease.jsp?press_release_KEY=446
Making the Case for a National Carbon Tax
December 09, 2008
For Immediate Release
Contact:
Stephen Kent, [log in to unmask], 914-589-5988
Nick Berning, [log in to unmask], 703-587-4454
NASA Lead Climate Scientist, House Democratic Caucus Leader, Senior
Economists and Environmental Leaders Urge Revenue-Neutral Carbon Tax as
the Best Way to Curb U.S. CO2 Emissions and Boost American Low- and
Middle-income Families
WASHINGTON, D.C.—At a Capitol Hill briefing today, NASA’s lead climate
scientist, senior economists and environmental leaders urged Congress
to move swiftly to enact a national carbon tax to reduce carbon
emissions before they push Earth’s climate system past its “tipping
point” into accelerating ecological and social collapse.
After the resounding defeat of the Boxer-Lieberman-Warner cap-and-trade
bill last spring, the carbon tax has emerged as a viable competitor to
a cap-and-trade system. As Congress begins to ponder climate
legislation widely expected in 2009, advocates at today’s briefing made
the case for taxing carbon as a more effective and economically viable
way to curb emissions while stimulating the economy. They argued the
considerable revenues carbon taxes would raise should be
revenue-neutral, and be returned to taxpayers either through direct
distribution or cutting taxes such as payroll taxes.
The public briefing for members of Congress and their staffs was
sponsored by the Environmental and Energy Study Institute (EESI), the
Carbon Tax Center, the Climate Crisis Coalition, Friends Committee on
National Legislation and Friends of the Earth.
“A price on emissions that cause harm is essential,” said Dr. James
Hansen, Director, Goddard Institute of Space Studies, National
Aeronautics and Space Administration and a leading voice on
understanding and redressing climate change. He urged “a carbon tax on
coal, oil and gas … applied at the first point of sale or port of
entry” to encourage fuel conservation and switching to low-carbon
alternatives.
“A carbon tax with 100 percent dividend [direct revenue distribution to
individuals] is needed to wean us off fossil fuel addiction,” Hanson
argued. “Tax and dividend allows the marketplace, not politicians, to
make investment decisions. It is also non-regressive.
Low and middle income people will find ways to limit their carbon tax
and come out ahead. Demand for low-carbon high-efficiency products will
spur innovation, making our products more competitive on international
markets. Carbon emissions will plummet as energy efficiency and
renewable energies grow rapidly. Black soot, mercury and other fossil
fuel emissions will decline.”
Rep. John Larson (D-CT), recently elected as chair of the House
Democratic Caucus and the sponsor of a carbon tax bill introduced into
the House last year, hosted the briefing. He said, “Climate change is
the great challenge of our time. As we in Congress tackle this
challenge it is important that we not just pass legislation, but pass
the right legislation. What I have proposed is legislation that would
tax bad behavior like polluting and return that money to average
Americans through a payroll tax rebate. Any legislation will create
winners and losers. In this case, the winners should be the American
people.”
Economist Gilbert Metcalf of Tufts University, author of A Green
Employment Tax Swap: Using A Carbon Tax to Finance Payroll Tax Relief,
recommended a carbon tax just under $17/ton of CO2. This would nearly
double the average price of coal, the most carbon-intensive fossil
fuel, leading to fuel substitution and process improvements that would
reduce coal burning by 32%. Petroleum products would increase in price
by nearly 13% and natural gas by just under 7%, he argued. Metcalf
advocates dedicating carbon tax revenues to eliminate the payroll tax
on the first $3,660 earned by each worker. He calculates that this
would equate to an average 11% reduction in payroll taxes, with greater
percentage reductions for lower-paid workers. Payroll tax reduction
would stimulate job growth, something the economy now urgently needs.
“In general, taxes on labor supply discourage labor and create economic
losses to workers over and above any taxes collected,” Metcalf
explained. “Tax reductions can encourage additional labor supply either
on the intensive margin (hours worked) or the extensive margin (the
decision to enter the labor force). The Green Employment Tax Swap
encourages additional labor supply.”
Robert Shapiro, former Undersecretary of Commerce, now head of SonEcon,
a Washington, DC consulting firm, and co-chair of the U.S. Climate Task
Force, criticized cap-and-trade proposals as clumsy, complex, volatile
and ineffectual ways to tax carbon emissions: “The only reason anyone
is talking about cap-and-trade now is because the U.S. (at Al Gore’s
urging) insisted on cap-and-trade in Kyoto [in 1997]. Mr. Gore has
since abandoned cap-and-trade and is now calling for a carbon tax to
replace other taxes. Caps just aren't working.”
Under the European Union’s carbon cap, CO2 reductions have been
"negligible and very costly," Dr. Shapiro said. Exemptions (e.g., for
coal-fired power plants in Germany) "overwhelm the cap." China and
India have strongly rejected cap-and-trade. In contrast, he argued, a
U.S. carbon tax would encourage our trading partners to tax carbon
themselves to avoid forfeiting revenues on their exports to us (WTO
rules would otherwise permit the US to tax imports for carbon).
Like most economists, Shapiro said he strongly prefers price-based
policies such as carbon taxes, to quantity-based carbon caps, because
the taxes are simple and predictable as well as difficult to evade. A
cap on quantity necessarily makes energy prices more volatile, and the
resulting price spikes are economically disruptive, harming
productivity and undermining support for the system. For example,
Shapiro noted that Southern California’s “RECLAIM” cap-and-trade system
for smog emissions crashed due to price spikes during the state’s
electricity crisis.
James Hoggan, a public policy specialist from British Columbia who
chairs Canada’s Suzuki Foundation, outlined the steps leading to
British Columbia’s successful implementation of its carbon tax in July,
and explained the national dimensions of the carbon tax in Canada. "The
Canadian experience with carbon taxes is politically daunting: a
federal party that proposed such a tax just lost a fall election, and a
provincial party that introduced a carbon levy last summer faces
potential defeat next May. But close analysis shows these politicians
got in trouble not for what they did, but for how they did it."
>From Canada’s experience, Hoggan drew the lesson that emphasizing
“revenue recycling” or the revenue-neutral configuration of the carbon
tax helps distinguish it from conventional taxes and garners more
public support. He cited polling data suggesting that a majority of
Canadians support a transparent revenue-neutral carbon tax as evidence
that carbon taxation could be popular with voters.
###
The Carbon Tax Center (www.carbontax.org) was launched in January 2007
to give voice to Americans who believe that taxing emissions of carbon
dioxide -- the primary greenhouse gas -- is imperative to reduce global
warming.
The Environmental and Energy Study Institute (www.eesi.org) is a
non-profit organization established in 1984 by a bipartisan, bicameral
group of members of Congress to provide timely information and develop
innovative policy solutions that set us on a cleaner, more secure and
sustainable energy path.
The Climate Crisis Coalition (www.climatecrisiscoalition.org) was
founded in 2004 to create awareness and convey a sense of urgency about
the climate crisis and broaden the constituency of the climate action
movement. Its approach to climate change links issues of environmental,
social and economic equity.
The Friends Committee on National Legislation (www.fcnl.org) is the
largest peace lobby in Washington, DC. Founded in 1943 by members of
the Religious Society of Friends (Quakers), FCNL staff and volunteers
work with a nationwide network of tens of thousands of people from many
different races, religions, and cultures to advocate social and
economic justice, peace, and good government. FCNL is nonpartisan.
Friends of the Earth (www.foe.org) is the U.S. voice of the world’s
largest grassroots environmental network, with member groups in 77
countries. Since 1969, Friends of the Earth has fought to create a more
healthy, just world.
NOTE TO EDITORS AND PRODUCERS: Experts quoted in this press release are
also available for phone or in-person interviews. Interviews may be
requested by contacting Stephen Kent, [log in to unmask], (914) 589-5988.
-----Original Message-----
From: [log in to unmask] on behalf of Lidy Nacpil
Sent: Thu 12/11/2008 6:48 AM
To: Nicola Bullard
Cc: CJN!
Subject: Re: [climate justice now!] VERY rough draft of
statement/meeting at 2PM
Hi Nicola, Hi all!
Sorry I cant be at the 2 pm meeting as I have to catch the train to
Berlin.
Here are my suggestions --
1. On the paragraph that refers to reparations of ecological debt -
change
250 to more than 400 years (colonialism and the plunder of the South`s
ecological resources started more than 250 yrs ago...)
2. In the references to debt -- the language should be something like
-- We
demand that the northern governments and financial institutions cancel
the
debts claimed from countries of the South. Much of these financial
debts are
illegitimate -- peoples of the South did not benefit from these debts.
Instead these debts financed projects and policies harmful to people,
communities and the environment. Many projects financed by debt
exacerbate
climate change. We ask governments of South countries to stop paying
illegitimate debt. The illegitimacy of financial debts are further
underscored considering the much greater historical, social and
ecological
debts owed to people of the South.
Thanks,
Lidy
Jubilee South
On Thu, Dec 11, 2008 at 3:11 PM, Nicola Bullard
<[log in to unmask]>wrote:
> Dear Poznaners,
>
> Attached is a VERY VERY rough draft of the CJN statement for the
COP14.
>
> We will meet again today THURSDAY 11 DECEMBER at 2PM at the Grouse
Room to
> discuss and try to prepare a next draft.
>
> Please note that we have NOT agreed about the form of sign on --
whether we
> will sign on as a network, or as individual organisations.
>
> Hope to see many of you at 2pm, or to get your comments by mail.
>
> cheers,
>
> Nicola
>
>
>
>
>
>
> Nicola Bullard
> Focus on the Global South
> CUSRI, Chulalongkorn University
> Bangkok, Thailand, 10330
> [log in to unmask]
> www.focusweb.org
> +662 2187363 (Thailand)
> +336 08044088 (France)
>
>
>
-- ÐÏࡱá