Hill Heat: Dingell Unveils Carbon Tax ProposalScience Policy Legislation Actiontag:hillheat.com,2005:TypoTypo2007-09-26T22:23:30-04:00Brad Johnsonurn:uuid:25e086a4-f662-4463-994c-ab18b6256c682007-09-26T21:01:00-04:002007-09-26T22:23:30-04:00Dingell Unveils Carbon Tax Proposal<p>As he <a href="http://www.hillheat.com/articles/2007/08/13/john-dingell-announces-global-warming-proposal">announced he would last month</a>, Rep. John Dingell (D-Detroit), chair of the House Energy and Commerce Committee, unveiled <a href="http://www.house.gov/dingell/carbonTaxSummary.shtml">draft legislation for a carbon emission fee and related elements</a>.</p>
<p>Dingell is <a href="http://www.house.gov/dingell/carbonTaxComment.shtml">soliciting comment</a> online.</p>
The elements:
<ul><li> A $50 tax per ton of carbon (approximately equivalent to a $14 price on <span class="caps">CO2</span>, not the <a href="http://www.cnsnews.com/ViewNation.asp?Page=/Nation/archive/200708/NAT20070810a.html">$100/ton <span class="caps">CO2</span></a> reported by CNSNews) to be phased in over five years and then indexed to inflation
<ul><li>Revenues will be apportioned to Medicare and Social Security, universal healthcare, <a href="http://www.ncsl.org/programs/health/chiphome.htm"><span class="caps">SCHIP</span></a>, conservation, renewable energy research and development, and <a href="http://www.acf.hhs.gov/programs/liheap/"><span class="caps">LIHEAP</span></a></li></ul></li>
<li>A $0.50/gallon gasoline tax to be phased in over five years and then indexed to inflation
<ul><li>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, <a href="http://www.ucsusa.org/assets/documents/jump.jsp?origID=pdf-702">The Diesel Dilemma</a> “on an energy-equivalent basis, each gallon of diesel fuel results in about three percent more heat-trapping gas emissions than gasoline.”)</li>
<li>Biofuel blends would only be taxed on their petroleum content</li>
<li>Revenues go to the highway trust fund, with 40% going to the mass transit and 60% going to roads</li></ul>
<li>A $0.50/gallon jet fuel tax, with revenues going into the airport and airway trust fund</li>
<li>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
<ul><li>Exemptions for historical homes (prior to 1900) and farm houses</li>
<li>Exemptions for home owners who purchase carbon offsets to make home carbon neutral or own <span class="caps">LEED</span> certified homes</li>
<li>Budget savings will go to pay for an increase in the Earned Income Tax Credit</ul><p>As he <a href="http://www.hillheat.com/articles/2007/08/13/john-dingell-announces-global-warming-proposal">announced he would last month</a>, Rep. John Dingell (D-Detroit), chair of the House Energy and Commerce Committee, unveiled <a href="http://www.house.gov/dingell/carbonTaxSummary.shtml">draft legislation for a carbon emission fee and related elements</a>.</p>
<p>Dingell is <a href="http://www.house.gov/dingell/carbonTaxComment.shtml">soliciting comment</a> online.</p>
The elements:
<ul><li> A $50 tax per ton of carbon (approximately equivalent to a $14 price on <span class="caps">CO2</span>, not the <a href="http://www.cnsnews.com/ViewNation.asp?Page=/Nation/archive/200708/NAT20070810a.html">$100/ton <span class="caps">CO2</span></a> reported by CNSNews) to be phased in over five years and then indexed to inflation
<ul><li>Revenues will be apportioned to Medicare and Social Security, universal healthcare, <a href="http://www.ncsl.org/programs/health/chiphome.htm"><span class="caps">SCHIP</span></a>, conservation, renewable energy research and development, and <a href="http://www.acf.hhs.gov/programs/liheap/"><span class="caps">LIHEAP</span></a></li></ul></li>
<li>A $0.50/gallon gasoline tax to be phased in over five years and then indexed to inflation
<ul><li>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, <a href="http://www.ucsusa.org/assets/documents/jump.jsp?origID=pdf-702">The Diesel Dilemma</a> “on an energy-equivalent basis, each gallon of diesel fuel results in about three percent more heat-trapping gas emissions than gasoline.”)</li>
<li>Biofuel blends would only be taxed on their petroleum content</li>
<li>Revenues go to the highway trust fund, with 40% going to the mass transit and 60% going to roads</li></ul>
<li>A $0.50/gallon jet fuel tax, with revenues going into the airport and airway trust fund</li>
<li>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
<ul><li>Exemptions for historical homes (prior to 1900) and farm houses</li>
<li>Exemptions for home owners who purchase carbon offsets to make home carbon neutral or own <span class="caps">LEED</span> certified homes</li>
<li>Budget savings will go to pay for an increase in the Earned Income Tax Credit</ul>www.carbontax.orgurn:uuid:006ca1be-90a7-460b-8b1c-8485bd8a7c1c2007-09-27T08:22:06-04:002007-10-03T11:04:37-04:00Comment on Dingell Unveils Carbon Tax Proposal by www.carbontax.org<p>To see the Carbon Tax Center’s analysis of the Dingell proposal, go to <a href="http://www.carbontax.org" rel="nofollow">www.carbontax.org</a>.</p>