US CARBON TAX?

Somebody, somewhere has a thorough analysis of the underlying causes of the malady of the global economy. Aide from the problems of the Europeans, a stronger and more confident US economy would be a good thing, hopefully for the American people and the global economy.

It seems to me that on the expenditure side there ought to be scrutiny of military spending in terms of it rationality and effectiveness in the post Cold War context. The other obvious course, so it would seem, would be raise more money from taxation. The rationale for lower taxation on rich is predictably is not working. Of course, however rational these proposals might seem they will not be seen as politically possible, since it seems the bulk of the American electorate does not count in the bound and packaged electoral process.

Writing in the face of the prevailing political orthodoxy, EJ Dionne (via Truthdig) advocates tax increases on the rich, while keeping quite about the military and homeland security expenditure. However, he does propose a revenue raising measure that will be of special interest to the Tony Abbott led Liberal Party in Australia:

A carbon tax, partly offset by tax cuts or rebates for middle-income and poorer taxpayers, could provide additional revenue. And we need to do still more to contain health care costs without hurting those who can’t afford insurance, and without voucherizing Medicare.

I doubt this proposal will see the light of day – who cares about the global atmosphere and climate change. Furthermore, it is doubtful whether the United States can provide a leadership role in World Affairs let alone economic issues, especially when their economy is struggling in relation to the well being of the majority as distinct from the select few who are under the illusion they can withdraw from humanity into their gated compounds.

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