Mitt Romney Supports A Carbon Tax / Dividend
Earlier this month, Mitt Romney posted the following message on Twitter:
Thought-provoking plan from highly respected conservatives to both strengthen the economy & confront climate risks: https://t.co/U6kmrQTPth
— Mitt Romney (@MittRomney) February 8, 2017
What is the Climate Leadership Council? It's a new advocacy group that includes prominent Republicans such as former Secretary of State/Treasury James Baker, former Secretary of Treasury Henry (Hank) Paulson, and former Secretary of State/Treasury/Labor George Shultz. It also includes Harvard professor Gregory Mankiw, who served as Chairman of the President's Council of Economic Advisers under President George W. Bush [1].
So what is the CLC pushing for? Let's take a look at their position document: The Conservative Case for Carbon Dividends. It's a short document that outlines "Four Pillars" of policy. First they lay out the problem (emphasis added):
Mounting evidence of climate change is growing too strong to ignore. While the extent to which climate change is due to man-made causes can be questioned, the risks associated with future warming are too big and should be hedged. At least we need an insurance policy. For too long, many Republicans have looked the other way, forfeiting the policy initiative to those who favor growth-inhibiting command-and-control regulations, and fostering a needless climate divide between the GOP and the scientific, business, military, religious, civic and international mainstream.
On to the pillars of their proposed policy, which I list below with my one-sentence summary of each:
1. A Gradually Increasing Carbon Tax - Tax fossil fuels when they enter the economy, and increase the tax with time.
2. Carbon Dividends for All Americans - Distribute the entire tax revenue back equally to all American citizens.
3. Border Carbon Adjustments - Treat exports/imports in a way that is consistent with the policy.
4. Significant Regulatory Rollback - Remove regulations that are made obsolete by the above policy.
The idea, of course, is that making fossil fuels more expensive will make alternatives more attractive. Meanwhile, some of that expense will be returned to you. Use less fossil fuel and you can come out ahead (i.e. dividend > extra fuel expense). Aside from a reduction in the use of fossil fuels, the document then goes on to argue that the tax/dividend policy would have additional benefits including helping low-income families and spurring the economy.
Clearly, the CLC and Mitt Romney are trying to signal to Republicans that it is OK to be concerned about climate change, it is OK to want government to do something about it, and that it is OK to want a carbon tax [2]. Moreover, they argue that their proposal is the BEST policy for addressing the problem. The CLC documents take occasional swipes at Obama and Democrats (as if it never occurred to them to implement a carbon tax), but that's OK. We all know that Republican politicians think sticking it to Democrats is more important than implementing good policy [3]. If making them feel superior is what it takes, so be it. A little hypocrisy in the service of the greater good is tolerable.
Unfortunately, as The Atlantic notes, the biggest obstacle to implementing this conservative policy is Republicans.
The problem in fighting climate change has never been a natural Democratic love for onerous regulatory regimes. It has been Republicans who have long refused to even entertain the idea that climate change is dangerous or human-caused...Indeed. In fact, if you click Romney's tweet above and go to the original, you'll see that many of the replies are a testament to that point.
Last year, the House G.O.P. unanimously supported a resolution that declared a carbon tax “would be detrimental to American families and businesses, and is not in the best interest of the United States.”
Is this the best policy for addressing the issue? I don't know; I'm not going to pretend that I'm a policy expert, but it seems like as good an option as any. Do I think it has a snowball's chance in hell of being passed? Not as long as Mitch McConnell is the Majority Leader of the Senate, given his representation of the coal industry. However, my longer-term view is more optimistic [4]. Is this something that Trump could get on board with? Who the heck knows?
But none of that matters at the moment. What is important is that Republicans (including voters) now have permission to support a carbon tax without feeling like they have taken on the identity of a liberal.
Mitt Romney says so!
Notes:
1. In other words, these are not a bunch of hippie liberal communists. Baker and Shultz, for example, served in, and for most of, the Reagan administration.
2. Romney's signal does have a bit of plausible deniability: 'Hey, I only said it was interesting.'
3. Oh, come on. You know it's true. See the presidency of Barack Obama.
4. McConnell won't hold that position forever. Not to be morbid, but if electoral politics doesn't take it away from him, death eventually will. In the meantime, the issue will only become more pressing and holdouts will become more isolated.
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