European Tribune - Comments - FT: We need new taxes.

FT: We need new taxes. | 33 comments (33 topical, editorial, 0 hidden)

That suggests that the ideal is a combination ... (none / 0)

... which gives a baseline on top of which is added the permit cost to industry, and certainty on quantity outcome.

If we rely on a carbon tax as a single silver-bullet, then we need to adjust the carbon tax annually in case it fails to meet targets. A quintennial adjustment would be too large and attract too much political opposition.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Apr 26th, 2007 at 12:04:56 PM EST
[ Parent ]

Re: That suggests that the ideal is a (none / 0)

You can project the changes out in advance on a rolling (say) five-year basis, so 0.3% a year for the next five years, and add the change for the next period next year and so on. We're not trying to get a sudden change here - we can't - but a gradual one.

by Colman (colman at eurotrib.com) on Thu Apr 26th, 2007 at 12:10:28 PM EST
[ Parent ]

Perhaps in the EU political economy the ... (none / 0)

... tax will persistently high-ball, but I expect in the US political economy for the tax to persistently low-ball, so a five year ratchet is a recipe for increasing the amount by which it falls short, and the size of the increment required to catch up will galvanize political opposition on a quintennial basis.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Apr 26th, 2007 at 12:24:18 PM EST
[ Parent ]

FT: We need new taxes. | 33 comments (33 topical, 0 editorial, 0 hidden)

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