CO2 tax could halve U.S. budget deficit

Posted on September 28, 2012

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28/09/12, 11:38 p.m. – Source: ips
demorgen

If the U.S. government CO2 emissions would entrust $ 20 per ton, she the next ten years the budget deficit by half reduction. According to a report by the Congressional Research Service (CRS), the research agency of the U.S. Congress.

According to the CRS, such a tax this year $ 88 billion (68 billion euros) application, and that figure may rise to $ 154 billion (119 billion euros) in 2021. The yield can be estimated U.S. budget deficit in ten years more than half, from 2,300 billion to $ 1,100 billion.

The research service provides or fierce political debate about the high pressure on the energy bills of American families. “Economic studies suggest that income from a CO2 tax to tax elsewhere to compensate, such as employment, income or investments, the highest benefit for the economy,” the report said.

“If Congress is considering such a system, there will probably be an important debate about how the revenue can flow back to the families to the financial pressures of the tax reduction.”

Republicans lie transverse
The probability that a CO2 tax is coming with the current Congress is virtually nonexistent. In August attempted Democrat Jim McDermott already a proposal in this direction to launch, but met with resistance from Republicans. Who do just bills to the existing environmental legislation to reverse, and the intense election campaign, it is unthinkable that they would be willing to even think about a CO2 tax.

The CRS is aware that a climate tax is also very strong opposition would get from energy-intensive sectors such as agriculture and generators.

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