Here is an interesting perspective, for all you revenue recycling fans (increase environmental taxes and decrease income taxes), we've just permanently cut income taxes for 99%+. Now it is time to pay for those tax cuts (since the Laffer curve is upward sloping in this range of tax rates). Andrew Samwick:
Maybe the next step is as Brad DeLong suggests -- they are now Obama's tax cuts, so he has to find a way to fund them. A large carbon tax to recover much of the revenue would complete the "Green Tax Swap" that I have long wanted to see. ...
