And also, what makes the carbon tax attractive is that it is not a tax raise upon the American people, but on polluters.
So it might make Republicans in the House and the Senate more amenable to it as a source of revenue. After all, it was Republicans who had initially proposed the carbon tax themselves.
In fact, a recent report by the Congressional Research Service, suggesting a $20 per ton tax on carbon emissions could halve the U.S. budget deficit over time.The carbon tax was initially a proposal that was supported by members of both parties, and given Hurricane Sandy's effect upon the East Coast, it now has a greater chance of being considered as a part of any deal. It also helps ease Republican concerns about getting revenue. Even though the White House may not directly propose a carbon tax, I think that Members of Congress should propose this.
Such a tax would generate about $88 billion in 2012, rising to $144 billion by 2020, the report said, slashing U.S. debt by between 12 and 50 percent within a decade, depending on how high the deficit climbs, the report said.
A handful of former Republican policymakers - ones most likely to reject new or higher taxes as a matter of principle - has been touting its potential to raise revenue for a cash-strapped federal budget.
If any of you are making phone calls to your Members of Congress, such as Rep. James Clyburn, Nancy Pelosi, and Steny Hoyer regarding any deal-making, you can propose this as an alternative to hurting Americans who depend on earned benefit programs such as Social Security and Medicare.