Eco-Taxes? Study Financed by U.S. Treasury Will Link Tax Code to Carbon Emissions

Coming soon: a green tax code for American businesses and individual taxpayers alike? A major tax study currently being sponsored by the U.S. Treasury will give environmental activists a powerful new weapon in their campaign to alter the entire American economic and social landscape in the name of halting “climate change”—including the possible levying of new carbon taxes. That campaign is bound to intensify in the aftermath of Nov. 6’s presidential election, regardless of who wins the race, as the nation faces the challenge of deficit reduction and tax reform that will be required to overhaul the country’s over-strained finances. Environmental advocates and others are likely to raise such innovative mechanisms as carbon taxes and major shifts in tax rates and incentives as part of the process—and the impending study may well provide them with important ammunition. Under the bland title of Effects of Provisions in the Internal Revenue Code on Greenhouse Gas Emissions, the $1.5 million study is being carried out under the auspices of the National Academy of Science (NAS). Originally planned to take two years, the ambitious project aims to take an inventory of the U.S. tax code in terms of the effects of its most important provisions on the emission of carbon dioxide and other greenhouse gas emissions—a huge and complicated exercise in environmental and economic modelling. The study itself will not be available until after the election...more