State considers nation’s first carbon emissions tax
SEATTLE — Washington could become the first state in the nation to impose a direct tax on carbon emissions from fossil fuels such as coal, gasoline and natural gas.
A ballot measure before the Legislature would create a carbon tax of $25 per metric ton of fossil fuel emissions burned in Washington, while reducing taxes.
-snip-
The proposal is designed to be “revenue neutral,” meaning that though tax revenues would increase for fossil fuels, it would mostly be offset by a decrease in other tax revenues. In this case, revenues would be returned to people and businesses by cutting the state sales tax by one point, virtually eliminating business taxes for manufacturers and providing rebates for working families, supporters say.
A state economic analysis, however, estimates the measure could cost the state about $915 million in lost revenues over the first four years. Initiative sponsors maintain that several assumptions used in the state’s analysis are wrong.
-more-
http://www.heraldnet.com/article/20160229/NEWS03/160229157
