I was recently asked by the National Journal to comment on what I thought was a desirable path for tax reform, if one could wish away political constraints that normally handcuff politicians. My answer was, of course, to tax energy, particularly carbon emissions, and use the revenue to reduce other taxes. As I and many others have noted often in the past, taxes on oil or gasoline hit many birds with one stone.
Discussion of energy taxes has always been political suicide. But here are several twists that could potentially increase the ability of the electorate to swallow them politically:read more