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In favor of carbon tax

A carbon fee and dividend proposal has just been introduced in the U.S. House of Representatives, and is something liberals and conservatives alike should support.

We know many farmers and blue collar workers are struggling to survive in today’s economy. They’re reminded 12 times a year — when their monthly payments come due — that they’re barely surviving economically. Like many, they probably want to leave a cleaner, healthier, less risky environment for their children and grandchildren, but feel they can’t afford the higher taxes everyone assumes will be required to address climate change and avoid further damage to the planet.

And who can blame them, when they’re just trying to survive month-to-month? But there’s a better solution, called the “carbon fee and dividend,” and it would actually benefit them financially.

This bipartisan, market-based policy would place a fee on fossil fuel suppliers for each ton of greenhouse gas emissions contained in their product. It then returns the net revenue from these fees directly to all U.S. households, through monthly dividend checks. The fee provides a strong incentive to reduce fossil fuel use, while the dividend rewards those who do.

Economic models have shown that most middle and low-income families would receive more money back in dividends than any fossil fuel surcharges passed along to consumers. It would also spur the economy by expanding green technology markets and creating more, better-paying jobs in improving building energy efficiency, making and installing solar photovoltaic systems, etc.

This is one “big government” action that we should all demand our representatives support.

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