A reasonable hope would be that those who wish to tell us of the economics of taxation about climate change know some modicum of each of the three subjects under discussion. This hope being dashed when we consider The Observer’s Phillip Inman on the subject(s). For he’s telling us that we still don’t know the solution to climate change here, that there’s still something we don’t know about how to tax to prevent it. More specifically, he’s whining that it’s the poor who would be hardest hit by a carbon tax and boy, isn’t that a problem?…See More
All the economists – you know, the experts on matters economic – who study what to do about climate change keep insisting that imposing a cost of carbon emissions through a tax or permit scheme is the efficient manner of dealing witih climate change. To which the usual answer is, yes, but that’s regressive. So, instead, let’s have lots of planning and schemes and regulation instead. Well, yes, but.
As it turns out, taxes are so much more efficient that the burden on the poor falls, even if in isolation the taxes are more regressive.…See More