Lying for a carbon tax

Dan Mitchell looks at the lies that the US Democrats are using to sell a carbon tax.

The claim about “revenue neutrality” is a stunning level of dishonesty, even by Washington standards.

At the risk of stating the obvious, if the government imposes a tax and then also creates a program to give money to people, that’s not revenue neutrality.

Was Obamacare “revenue neutral” because all the new taxes were balanced out by the handouts and subsidies that the law created for the big insurance companies?

Of course not.

And a new carbon tax doesn’t magically become “revenue neutral” because new revenues are matched by new spending.

To be sure, supporters can argue that their plan is “deficit neutral,” and that would be legitimate (even though I would argue that this wouldn’t be the case in the long run because of the adverse economic impact of new taxes and new spending).

But “revenue neutral” is a bald-faced lie.

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7 Responses to Lying for a carbon tax

  1. stackja

    Dems lying? I am shocked!

  2. RobK

    From the bit of proposed legislation i saw when we were to get a carbon tax, an entirely new industry of monitoring and compliance comes with it. A lawyers and accountants paradise for more work. Given that none of this type of work actually produces anything and therefore can only be a drag on the economy, i fail to see how it can be revenue or deficit neutral over all because the economy will suffer.

  3. Mark M

    The idea of preventing imaginary future carbon (sic)-induced bad weather by taxing us now and then allegedly giving the money back is ultra-stupid.

  4. Lutz

    All taxes are only a form of redistribution.

  5. The Left have forever believed that the solution to everything problem, whether real or perceived, is to tax it.

  6. Critical Mass

    Have economists figured out yet that a new trillion dollar industry sector has been created out of thin air – the hot air industry sector? And how is a scam factored into productivity?

    When they acknowledge this, what will be the formula for calculating the effect of the hot air industry sector on GDP? Given that it produces nothing but hot air?

  7. Greg Byrne

    What about John Humphrey’s “monograph” for the CIS on a carbon tax. No free market person has publicly denounced it so far.

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