CEOs for a higher gas tax

From the WSJ's Real Time Economics blog:

Members of the Journal’s CEO Council tasked with discussing priorities for the U.S. economy and finance offered several fairly uncontroversial suggestions to the incoming administration: implement a fiscal stimulus plan without worsening the long-term deficit, appoint a panel to address financial regulation, create an economic vision.

Tucked away in the proposal, in the category of long-term tax policy, was this political grenade: “consider raising taxes on gasoline.”

...

Raising the gas tax has been seen for years as one solution to discourage gasoline consumption, a move that could benefit the nation through lower imports, a cleaner environment and a stronger push toward fuel efficiency. Some economists have even suggested offering rebates to lower-income consumers so they’re not disproportionately hit by the tax hike.

Mr. Bewkes said the group’s members, who focused on the U.S. economy and finance, generally agreed that carbon taxes are likely to be more effective than a cap-and-trade approach to dealing with carbon emissions.

Comments

[Companies prefer layoffs to pay cuts]

That's just rewarding greed and stupidity. If people stop consuming, there will be much more scary consequences. There are lots of oil in the world - why should people pay their government for allowing them to use that?

[Pradeep]

"Members raised the issue along with a call to lower corporate income taxes while making it more broadly based. At the same time, they acknowledged that “somewhat higher personal tax rates” would be necessary given the economic troubles, Mr. Bewkes said."
Are there any calculations out there which show that the economic effects of lower, more broad-based corporate taxation are higher than lower personal tax rates?

I do agree that rebates should be given to lower-income consumers.

It is interesting to see carbon tax brought to the forefront again. I however think that this will be as complicated to implement as a cap-and-trade system. At a recent carbon markets conference , it was pointed out that when President Clinton wanted to have a BTU tax on energy, there were many who filed for tax exemptions. So this might not be as straightforward as it is made out to be.

The USCAP calls for a cap-and-trade system to reduce GHG emissions.I think carbon taxes may play a role in regulating GHG emissions from sectors which are not covered in an initial GHG reduction legislation.