PLAN USES TAXES TO FIGHT CLIMATE CHANGE
September 27, 2007
Rep. John Dingell (D-Mich.) is proposing a recipe for dealing with climate change that many people won't like -- a higher gasoline tax, a carbon tax and scaling back tax breaks for some home owners, says the Associated Press.
Dingell also says he hasn't rule out a "cap-and-trade" system, but at least for now wants to focus on taxes:
- A 50-cent-a-gallon tax on gasoline and jet fuel, phased in over five years, on top of existing taxes.
- A tax on carbon, at $50 a ton, released from burning coal, petroleum or natural gas.
- Phaseout of the interest tax deduction on mortgages for homes over 3,000 square feet.
- Owners would keep most of the deduction for homes at the lower end of the scale, but it would be eliminated entirely for homes of 4,200 square feet or more.
Dingell said he's not sure what the final climate package will include when the House takes it up for a vote. The taxes measures he's proposing, in fact, will be taken up by another House committee. And the Senate is considering a market-based system that would set an economy-wide ceiling on the amount of carbon dioxide that would be allowed to be released.
Source: H. Josef Hebert, "Plan Uses Taxes to Fight Climate Change," Associated Press, September 26, 2007.
Browse more articles on Tax and Spending Issues