Sunday, July 19, 2009
Why I don't think a carbon tax for corporations that pollute is a good idea
It might sound a bit backwards, since the point of the carbon tax for corporations that pollute is to make them pollute less to avoid having to pay the tax, but that's not how I see it playing out. When costs go up for a corporation, the price of their products goes up. If corporations had to pay the extra cost of a carbon tax, they would raise the price of their products. Some people might say they don't mind paying $4 for a loaf of bread, but that's not the point. If corporations that have to pay the carbon tax are raising the price of their products to get that money back, then they're basically passing the cost of the tax on to us. That means that we would be paying the carbon tax instead of the corporation, which defeats the purpose.
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