Dingell Unveils Carbon Tax Proposal 4

Posted by Brad Johnson Thu, 27 Sep 2007 01:01:00 GMT

As he announced he would last month, Rep. John Dingell (D-Detroit), chair of the House Energy and Commerce Committee, unveiled draft legislation for a carbon emission fee and related elements.

Dingell is soliciting comment online.

The elements:
  • A $50 tax per ton of carbon (approximately equivalent to a $14 price on CO2, not the $100/ton CO2 reported by CNSNews) to be phased in over five years and then indexed to inflation
    • Revenues will be apportioned to Medicare and Social Security, universal healthcare, SCHIP, conservation, renewable energy research and development, and LIHEAP
  • A $0.50/gallon gasoline tax to be phased in over five years and then indexed to inflation
    • Diesel would be excluded from this tax because “the fuel economy benefits of diesel surpass even its emissions benefits; it provides about a thirty percent increase in fuel economy and a twenty percent emissions reduction,” figures basically in line with the Union of Concerned Scientists report, The Diesel Dilemma “on an energy-equivalent basis, each gallon of diesel fuel results in about three percent more heat-trapping gas emissions than gasoline.”)
    • Biofuel blends would only be taxed on their petroleum content
    • Revenues go to the highway trust fund, with 40% going to the mass transit and 60% going to roads
  • A $0.50/gallon jet fuel tax, with revenues going into the airport and airway trust fund
  • McMansion provision: Phases out the mortgage interest deduction on primary mortgages on houses over 3000 square feet, going to zero for homes 4200 square feet and up
    • Exemptions for historical homes (prior to 1900) and farm houses
    • Exemptions for home owners who purchase carbon offsets to make home carbon neutral or own LEED certified homes
    • Budget savings will go to pay for an increase in the Earned Income Tax Credit
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  1. www.carbontax.org Thu, 27 Sep 2007 12:22:06 GMT

    To see the Carbon Tax Center’s analysis of the Dingell proposal, go to www.carbontax.org.

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