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Summary Of The Carbon Tax Charade By Oren Cass

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Angela, The article by Oren Cass, “The Carbon Tax Charade”, was a great addition to this week’s forum post topic. Cass provided a great example on how the worst problem with a carbon tax is its extraordinary regression. He further explains that because poorer households spend more of their income on energy than wealthier households, the price increases created by tax also increases the amount spent on energy costs. Studies show that a $15 per ton carbon tax would cost the bottom 10 percent of households more than 3.5 percent of their income, and most taxes under consideration are two to three times higher (). As I discussed this week, the cap and trade policies add incentives and room for firms to decide on how to deal with their emissions.
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