Do you want class warfare? Just spell “Class” as “Carbon” and then you’re going to find yourself halfway there.
Let us consider the effects of this policy. A ton of carbon dioxide contains 248 kilograms of carbon, so a tax of $300 per ton of CO2 would be equivalent to taxing carbon at a rate of $1.21 per kg. Since there are about 2.5 kg of carbon in a gallon of gasoline, this would increase the cost of a gallon of gas by $3.02 per gallon, or just a little more than Frank says. The average American driver uses about 730 gallons of gasoline per year, so this tax would represent a cost of about $2,200 per driver. This would be a serious hit for the average American worker, whose before-tax income is about $45,000 per year, and devastating to those making less than this.
…. and remember that it would come on top of Obama’s new mileage standards which will already add 15,000 dollars to the cost of a car. If these people get their way, then by 2025 a car will be a distant luxury that few ordinary Americans can afford. And that’s exactly their goal.
Under America’s current tax system, the top 5 percent of income earners pay 59 percent of all federal income taxes, the next 45 percent pay 39 percent, and the bottom half pays next to nothing. But because basic commodities such as food, electricity, and fuel are bought in similar amounts per capita regardless of income (i.e., a working-class family living on $30,000 per year in Harlem uses about the same amount of electricity and food as the family of a money manager living on $30 million per year on Park Avenue; and rural Americans, of whatever class, spend much more on gasoline than either), the $2.78 trillion green tax would be spread nearly evenly on all Americans, not as a fixed “flat tax” percentage of income, but as a fixed cost regardless of income.
Divided evenly among 300 million Americans, the green tax works out to a burden of $9,270 imposed on every man, woman, and child. While this would be a pittance for the most affluent Americans, it would take away 40 percent of the total income of a family of four supported by two wage earners making the average U.S. salary of $45,000 each, and it would be a virtually fatal burden for the poor.
Again not a problem for the Green crowd which keeps saying that we should be looking to Indian and African slums for guidelines on how to live a less materialistic life.
The left would try to even this out with subsidies that would flow into a planned economy where the price of goods would be controlled by the government based on class. That goes even further than Soviet Communism did, but it’s the only way to avoid the logical effects of a carbon tax, discussed above, that would make life unlivable for tens of millions of Americans.
The left’s preference for trickle down taxation requires an invisible hand. The government promises to crack down on corporations and the rich and the regulatory costs are passed down to everyone.
Was ever a more regressive tax policy proposed? And has anyone ever demanded that the United States launch a trade war to force other countries to impose such oppressive policies on their own people, most of whom can afford them even less?