First Name | Brian |
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Last Name | Carr |
Email Address | brian.carr21@verizon.net |
Affiliation | |
Subject | Fee and Dividend Avoids Cap and Trade Problems |
Comment | The complexity of the proposed regulations for a cap and trade program clearly illustrates the advantages of a fee and dividend system. Issues such as offsets, which raise many very complicated issues are not present in a F&D program where gradually increasing fees are set on fossil fuels. Market manipulation problems are also avoided. Other important advantages of F&D are that since the proceeds collected are returned to the people, there is no depressing economic effect, a consideration that ARB should definitely consider given the state of the economy. Moreover, F&D is politically aceptable to many who oppose cap and trade since F&D is revenue neutral and can be supported even by those groups that usually oppose all taxes. The requirement that 2/3rds of the legislature must approve new fees or taxes should not inhibit ARB from adopting a clearly superior program. The redrawn legislative districts could make this requirement obtainable even without bipartisan support. Moreover, a system that is revenue neutral and results in a dividend check in each voter's mailbox would be attractive to many of those who typically oppose all taxes. ARB needs to give a fair hearing to a fee and dividend program before it adopts an incredibly complex and problematic cap and trade program. |
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Date and Time Comment Was Submitted | 2011-08-10 11:22:23 |
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