Carbon Tax Bill [Passed]

[Ebowed]

Carbon Tax Bill

§1. Determination of Taxable Carbon Dioxide
(a) The President shall determine based on the best available scientific evidence available, the amount of carbon dioxide emitted by the production and consumption of fossil fuels for the purpose of applying the tax called for in this act.
(b) The initial determination shall be due on the September 30, 2007 or thirty days after the passage of this Act, whichever is later, such determination shall be used for the calculation of the tax imposed in calendar year 2008.
(c) For calendar years after 2008, the President may issue a revised determination no later than September 30 of the prior calendar year.  If no revision is made the determination used in the prior calendar year shall be used.

§2. Determination of Base Tax Rate
(a) For calendar year 2008, there shall be a base tax of $5 per tonne of emitted carbon dioxide.
(b) For calendar year 2009, there shall be a base tax of $10 per tonne of emitted carbon dioxide.
(c) For calendar year 2010, there shall be a base tax of $15 per tonne of emitted carbon dioxide.
(d) For calendar year 2011, there shall be a base tax of $20 per tonne of emitted carbon dioxide.
(e) For calendar year 2012, there shall be a base tax of $25 per tonne of emitted carbon dioxide.
(f) For calendar year 2013, there shall be a base tax of $30 per tonne of emitted carbon dioxide.
(g) For calendar year 2014, there shall be a base tax of $35 per tonne of emitted carbon dioxide.
(h) For calendar year 2015, there shall be a base tax of $40 per tonne of emitted carbon dioxide.
(i) For calendar year 2016, there shall be a base tax of $45 per tonne of emitted carbon dioxide.
(j) For calendar year 2017, there shall be a base tax of $50 per tonne of emitted carbon dioxide.
(k) For calendar year 2018 and beyond, the base tax per tonne of emitted carbon dioxide shall be that of the previous calendar year multiplied by the factor determined in section 3.

§3. Tax increase factor
(a) The calculation of the factor to be used in section 2(k) shall be made no later than September 30 of the year preceding the calendar year for which the factor shall be used to determine the base tax rate per tonne of emitted carbon dioxide.  In the event that the calculation is not made by that time, a factor of 1.1 shall be used.
(b) The base factor shall be the geometric mean of Atlasian carbon dioxide emissions in the five calendar years previous to the calculation of the tax increase factor divided by Atlasian carbon dioxide emissions in the calendar year 1990.
(c)(1) If the base factor is greater than 1.1, then the factor to be used shall be 0.99 + 0.1 * the base factor.
(2) If the base factor is between 1.0 and 1.1 then the factor to be used shall be the base factor.
(3) If the base factor is lesser than 1.0, then the factor to be used shall be 1.0.

§4 Adjustment for inflation.
The base tax rate called for in section 2 shall be multiplied by the Core Producer Price Index as of the September prior to the calendar year for which the tax shall be assessed divided by the  Core Producer Price Index as of September 2007.

§5 Applicability
This tax shall be assessed on all fossil fuels produced in Atlasia or imported into Atlasia.


Sponsor: Sen. Ernest

[DownWithTheLeft]

I like the idea of the bill, however, I think we should include tax breaks for buying and/or owning a hybrid car.  Anyone have an idea for an amount?

[Sam Spade]

I would like to first hear Ernest explain what this bill does in practical terms. (although I've already got kind of a good guess on it)

[True Federalist (진정한 연방 주의자)]

I would like to first hear Ernest explain what this bill does in practical terms. (although I've already got kind of a good guess on it)

Let me begin by repeating what I said in the introduction thread:
As far as gasoline is concerned this is a very modest tax of $0.50 / gallon as of 2017, but coal produced electricity would would increase by 4 to 5 cents per kWh, which would be a about a 50% increase in the price, so I can't see implementing a carbon tax on a faster schedule without risking significant economic impacts, especially since I have chosen not to exempt any uses from the tax as most carbon taxes that have been passed do, though I have limited it to just fossil fuel CO2 emissions since that is the type of greenhouse gas emission for which I have been able to obtain info as to the price impact in real world terms.

This tax is intended to be use and source neutral by not giving any fossil fuel a preference over another and by not exempting certain uses.  That's why for instance its impact on gasoline and petrodiesel prices is so modest.  A higher carbon tax to discourage even more such consumption would have a much higher impact on electricity prices given that about half of our electricity production comes from coal fired plants and another fifth comes from natural gas fired plants.

Also, so as to limit the economic impact of this tax, it has a schedule for a gradual implementation.

Finally as far as Sen. DWTL's suggestion is concerned, this tax is technology neutral in that it doesn't care how carbon emissions are reduced, only that they are reduced.  Government has a poor record when it comes to picking particular technologies as solutions for problems, and I'm doubtful of its ability to do better in the future.  Instead, it applies the simple principle that government can be quite effective at discouraging an activity by taxing it.

[Јas]

The Carbon Tax Bill (as above) is up for final vote.

Please vote aye, nay or abstain on the bill.

[minionofmidas]

Aye.

[Ebowed]

Aye

[Sam Spade]

Aye.

[Filuwaúrdjan]

Aye

Nothing to add really

[Keystone Phil]

Aye

[DownWithTheLeft]

Aye

[Brandon H]

Aye

[Јas]

Current Tally
Aye: 7 (Lewis; Ebowed; Sam; Al; Phil; DWTL; Brandon H)
Nay:
Yet to vote: 2 (PBrunsel; Rob)

The bill having garnered enough votes to pass, Senators have 24 hours from now to change their votes.

[Јas]

Final Vote
Aye: 7 (Lewis; Ebowed; Sam; Al; Phil; DWTL; Brandon H)
Nay:
Abstain: 2 (PBrunsel; Rob)

On a vote of 7-0-2, the Carbon Tax Bill has passed the Senate and is presented to the President for his signiture or veto.

[Colin]

X Colin Wixted