Horowitz: Republican Heavyweights Advocate Carbon Tax

Tuesday, February 14, 2017

 

View Larger +

Rob Horowitz

In separate, but coordinated, recent  Wall Street Journal and New York Times opinion pieces  Republican heavyweights led by former Secretary of State James Baker strongly advocated for adopting a national carbon tax in order to effectively combat climate change and released a detailed description of how it would work.

The pieces were designed to persuade fellow Republicans and the business community that immediate action on climate change was the only prudent course and a carbon tax, unlike the Obama Administration’s regulatory scheme, was in keeping with free market principles. In a follow-up interview, Baker, who also served as President Reagan’s chief of staff, argued that the Gipper himself, still in many ways the Republican Gold Standard, would have probably been on board with the plan.  

Baker co-authored the Wall Street Journal piece with George Shultz, another former Secretary of State, in which in an effort to enlist climate change skeptics they called a carbon tax an ‘insurance policy”— because even if you are not yet convinced of the science, the risks of ignoring it in case the scientists are right is too great. They assert that an appropriately priced carbon tax would reduce more greenhouse gas emissions than the current Obama Clean Power Plan. There a number of experts that agree with them on this point.

GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST

In a separate New York Times piece, former Reagan and George W. Bush chief economists Martin Feldstein and Gregory Mankiw, joined by head of the New America Foundation, Ted Halstead made a detailed economic and environmental case for the plan, writing it was based on four pillars: “First, the federal government would impose a gradually increasing tax on carbon dioxide emissions. It might begin at $40 per ton and increase steadily. This tax would send a powerful signal to businesses and consumers to reduce their carbon footprints. Second, the proceeds would be returned to the American people on an equal basis via quarterly dividend checks. With a carbon tax of $40 per ton, a family of four would receive about $2,000 in the first year. As the tax rate rose over time to further reduce emissions, so would the dividend payments. Third, American companies exporting to countries without comparable carbon pricing would receive rebates on the carbon taxes they’ve paid on those products, while imports from such countries would face fees on the carbon content of their products. This would protect American competitiveness and punish free-riding by other nations, encouraging them to adopt their own carbon pricing. Finally, regulations made unnecessary by the carbon tax would be eliminated, including an outright repeal of the Clean Power Plan.”

Other members of the group pushing the carbon tax include Hank Paulson, former secretary of the Treasury under George W. Bush and a long-time environmental advocate, and Rob Walton, the former chair of Wal-Mart. Baker and several other members of the group met last week with Vice-President Pence, Jared Kushner, Ivanka Trump and Gary Cohn, President Trump’s director of the National Economic Council  to make the political and economic case for the plan.

While this as an impressive and formidable group, their influence is likely limited because they are in many ways yesterday’s Republicans. And a carbon tax will be a very tough sell in Congress and is likely to be aggressively opposed by the Koch brothers, among other powerful interests. On the other hand, for President Trump, it could be a political master-stroke, attracting Democrats and positioning him well with moderate Republicans.  It would demonstrate that President Trump is truly a different kind of Republican, willing to forge new coalitions and to do so in the interests of solving a major national and global challenge.

As one of the shrewdest and most effective operators Washington, D.C. has ever seen, if this can get done Jim Baker will figure out how to do it. For the good of the nation and the world, let’s hope that he and these other true Republican statesmen succeed.

 

Rob Horowitz is a strategic and communications consultant who provides general consulting, public relations, direct mail services and polling for national and state issue organizations, various non-profits and elected officials and candidates. He is an Adjunct Professor of Political Science at the University of Rhode Island

 

Related Slideshow: Trump’s Win - What Does it Mean for Rhode Island?

View Larger +
Prev Next

Jennifer Duffy

Cook Report

"We don't really know what a Trump presidency means for the nation, never mind the smallest state.  One of the unintended consequences of last night's results is that Sen. Jack Reed won't be chairman of the Senate Armed Services Committee.  Chalk that up as a loss for RI."

View Larger +
Prev Next

Pam Gencarella

Head of Ocean State Taxpayers' Association

"Trump’s win means that his signature issue, illegal immigration, could have a big impact on RI, hopefully reversing our course as a sanctuary state and saving the state taxpayer millions of dollars.  While we agree with his 'repeal and replace' Obamacare stance, we have no idea what that means to the RI debacle known as UHIP.  It is not a stretch to believe that federal funding for this kind of system will be off the table so, will RI be stuck with this massively expensive system that still doesn’t work and that is expected to cost another $124 million to fix?  

Trump's belief that there is significant fraud in the Food Stamp program and the policies that may come from that belief could have a negative impact on RI's local economy since there are businesses in certain cities that rely heavily on this program, fraud and all. On the upside, we may be able to ditch the UHIP program if there is significantly less need for processing welfare program requests (ie. Medicaid and food stamps) resulting from fewer illegal immigrants and less fraud.  While we are ambivalent about his touted child care policies, if enacted, it may force our legislators to revisit the ever growing state cost of subsidies in this area and possibly reduce the fraud and abuse in this system." 

View Larger +
Prev Next

Kay Israel

Professor at Rhode Island College

"With a Republican President and Congress, Rhode Island will probably be excluded from the 'fruits of victory."  

The congressional delegation will be able to vocally make their presence felt, but in the long term it's more symbolic than substantive.  

For Rhode Island it's a matter of holding on and waiting until '18 or '20 and a surge in Democratic influence."

View Larger +
Prev Next

Jennifer Lawless

Professor at American University

"The RI congressional delegation just became even less powerful than it was. With unified government, Trump doesn’t need to quell Democrats’ concerns or acquiesce because he’s worried about a Democratically-controlled Senate.

His appointments will reflect that. His executive orders will affect that. And the conservative policy agenda he puts forward will affect that."

View Larger +
Prev Next

Len Lardaro

Professor at University of Rhode Island

"Well there's a few things -- because there's not going to be gridlock, that's a big difference if it had been Hillary and a GOP Congress, in which nothing would got done. We'll at least get a half a billion in infrastructure that's going to pass which will have an impact.

I think you'll see there will be reduced reliance on government nationally -- and that's where we'll stick out like sore thumb. We've relied way too much on government -- and our government is highly inefficient and ineffective.  Maybe, just maybe, in this who cycle of things we might be forced to be small and more efficient for once.

A couple of other things -- interest rates jumped. The one to follow is the ten year government bond rate -- which is tied to mortgages. It went from 1.7% to 2.05% in one day. The point is -- if the ten year stays high, mortgage rates will start going higher -- and in the short time people will run to re-finance. 

That's the short term impact -- but then if rates stay hight, that will make mortgages more out of reach. And we just passed a bond issue to limit open space -- housing has limited upside here.
The next thing -- the Fed Reserve will go ahead with tightening next month. A strong dollar will hurt manufacturing. When the dollar is strong our exports become more expensive overseas. 

Our goods production sector -- manufacturing and construction -- in the near term will do a little better, but as time goes on will be more limited. But something you won't hear, is there are lags in fiscal policy, of six months to year. So we won't really see the effects until the third our fourth quarter of 2017, going into 2018."
 

View Larger +
Prev Next

Mike Stenhouse

RI Center for Freedon and Prosperity

"As the unbelievable turned into reality this morning, it struck me that the presidential election was not really all about Donald Trump and Hillary Clinton. It was about a fed-up people, revolting against a corrupt system - the "beast" - that relentlessly favors insiders. Hillary personified the beast, while Donald personified the slayer.

Sadly, based on election results in our state, Rhode Island's version of the beast lives on. I fear our political class has not learned the lessons from the Bernie Sanders and Donald Trump movements - and will continue with their government-centric, anti-family, anti-business status quo."

View Larger +
Prev Next

Kristina Contreras Fox

VP of Young Democrats of America

"A Trump Presidency means the validation of the ugliest part of America. In RI, as with the rest of the country, the hammer of his hatred will fall hardest on minority communities. Being a blue state doesn't make us immune from this danger.

Trump won over 35% (39.5) of the vote here! We need to look in the mirror, and not lie about what the reflection shows us. No more hiding underneath a blue blanket. I expect those who claim Democratic values to be true to those values. The gulf between words and actions have turned into fertile ground for Trump's message to grow here in RI. If you call yourself a Democrat, if you claim to stand in opposition to Trump, now is the time to prove it. Show up and fight back."
 

 
 

Enjoy this post? Share it with others.

 
 

Sign Up for the Daily Eblast

I want to follow on Twitter

I want to Like on Facebook