Tuesday, September 20, 2016

Economics of pollution tax

One argument in favor of raising the pollution tax is it would increase the amount of money that the government would get. Because we are such in debt, the government needs a lot of money to spend on public services, welfare, the military, etc... So in a way it would help the US by not increasing the debt as much, even though the amount of money it would provide would be extremely low. "The Canadian province began to tax fossil-fuel users, ranging from utility companies to car drivers, in 2008. Since then, the economy has grown by an average of nearly 2 percent a year," (scientificamerican.com, 12/1/15) By putting a pollution tax in place, British Columbia has improved vastly on their economy compared to the rest of Canada. So it should work here too.
          
            The reason why raising the pollution tax would be bad is because then people would have to spend even more money to fill up their vehicles. And a lot of people use that gas to get to work, buy groceries, and lots of other things that contribute to making the economy better. If there was a tax increase, people would be driving less and spending less money which would be bad for the economy. It may also lead less production in the US and more in other countries that have little to no pollution tax. "Production may shift to countries with no or lower carbon taxes." (Tejvan Pettinger, economicshelp.org, 01/20/13) I agree with the article because products could be made cheaper in other countries, therefore less things would be made in the US which would mean less jobs for Americans.

            I don't think it would be a good idea to raise the pollution tax. It's already to high and another one would just make drivers spend even more money on gas. It would make more companies produce more products overseas because it would be cheaper to do so, which would lead to less jobs in the US. The pollution tax already does almost nothing and is pointless so why should it be increased.

1 comment:

  1. While I agree with you on businesses having to sell overseas, I don't agree with the fact that drivers would continue to pay for gas. For some, albeit not for pleasant reasons, it would encourage them to take other methods of transportation and therefore keep the environment cleaner. I'm still shaky on where I lie in this argument, but I think raising it a bit would help the environment more.

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