Question

Write an essay discussing the pros and cons of the Washington Carbon Tax Initiative that was not passed last year (initiative 1433).

Answer 1

Answer- Carbon tax refers to the tax imposed on burning of fossil fuels which leads to emission of carbon dioxide in the atmosphere. A bill was presented to pass the carbon tax in washington but it was not successful in passing as it lacked a few votes. Following are some of it’s pros and cons-

PROS

• It follows the concept of PPP ie., polluter pays principle as the one who will be polluting is going to incur the carbon tax and is eventually paying for polluting the environment.

• This concept is efficient socially as the polluter is paying the social cost of polluting the environmemt.

• Since there are many factories and cars on the road and also other polluting things which have a harmful effect on the environment so this kind of tax system was the need of the hour. As it will lead to rise in revenue which can eventually be used in reducing the pollution.

• With the coming of this tax system the firma will find different ways to use and leoduce energy as butning of fossil fuels will eventually lead to incurring of hight costs and thus they would turn to solar power or any other renewable source of energy.

CONS

• Business firms and other entities which are entitled to claim tax deductions will now be able to claim higher tax deductions or claim exemtions. This will eventually lead to no rise in the overall revenuw collected by way of such carbon tax.

• It is very difficult to measure how much each firm pollutes and thus it would be much difficult to impose taxes on the polluter. Alsonif firms are given the duty to measure their polluting levels then they will try to evade tax by not showing their actual polluting level.

• Such a tax could be discouraging for the firms and other entities which come under this tax system and they may wish to shift their units to places which do not have auch carbon tax. Thus , it may lead to unemployment also.

• Maintainence of tax collected by way of carbon tax can lead to additional costs in administer the work and it will also lead to more complexities.