Comments on: Fiscal Policy and Cap and Trade http://cstpr.colorado.edu/prometheus/?p=4998 Wed, 29 Jul 2009 22:36:51 -0600 http://wordpress.org/?v=2.9.1 hourly 1 By: Roger Pielke, Jr. http://cstpr.colorado.edu/prometheus/?p=4998&cpage=1#comment-12527 Roger Pielke, Jr. Fri, 27 Feb 2009 16:38:15 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=4998#comment-12527 -2- David, I like "cap and evade" but my favorite is "tax and charade" ;-) -2- David, I like “cap and evade” but my favorite is “tax and charade” ;-)

]]> By: David http://cstpr.colorado.edu/prometheus/?p=4998&cpage=1#comment-12524 David Fri, 27 Feb 2009 16:11:45 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=4998#comment-12524 Roger - this reinforces your view that cap and trade will be unworkable. With more emphasis on general revenue generation than sending the "correct" signal to the market, there are likely to be more loopholes granted to extract votes, in which case it becomes "cap and evade." I have maintained that cap and trade will not become law this Congress but instead in 2011 because of the sheer scope and the size of the potential spoils. Expect the House to ram it through by the end of this year for the president to have something at the big international get-together; do not expect a law going into presidential mid-terms when incumbents will be afraid to run on having raised energy prices. If there is a law by the end of this Congress, it will be so watered down as to just generate some revenue with minimal behavior change. Roger – this reinforces your view that cap and trade will be unworkable. With more emphasis on general revenue generation than sending the “correct” signal to the market, there are likely to be more loopholes granted to extract votes, in which case it becomes “cap and evade.” I have maintained that cap and trade will not become law this Congress but instead in 2011 because of the sheer scope and the size of the potential spoils. Expect the House to ram it through by the end of this year for the president to have something at the big international get-together; do not expect a law going into presidential mid-terms when incumbents will be afraid to run on having raised energy prices. If there is a law by the end of this Congress, it will be so watered down as to just generate some revenue with minimal behavior change.

]]> By: Maurice Garoutte http://cstpr.colorado.edu/prometheus/?p=4998&cpage=1#comment-12501 Maurice Garoutte Thu, 26 Feb 2009 19:00:22 +0000 http://sciencepolicy.colorado.edu/prometheus/?p=4998#comment-12501 This morning president Obama made a televised speech previewing the upcoming budget bill. Several large spending promises were made that were to be paid for by raising taxes on the top 2 percent of tax payers. The math only works with some other source of revenue such as cap and trade. Do we know if the revenue generated by cap and trade is progressive like the income tax, or regressive like the sales tax? My first blush guess is that it will be regressive. This post works very will with http://sciencepolicy.colorado.edu/prometheus/measuring-the-deficit-4981. This morning president Obama made a televised speech previewing the upcoming budget bill. Several large spending promises were made that were to be paid for by raising taxes on the top 2 percent of tax payers. The math only works with some other source of revenue such as cap and trade.

Do we know if the revenue generated by cap and trade is progressive like the income tax, or regressive like the sales tax? My first blush guess is that it will be regressive.

This post works very will with http://sciencepolicy.colorado.edu/prometheus/measuring-the-deficit-4981.

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