| |
| | Carbon Taxing - Background |
 | | This tax change involves reorienting the tax code by eliminating existing taxes on those things, which society wishes to encourage, such as income and labor, and imposing taxes onto behaviors, which society wishes to discourage, such as pollution and other environmentally destructive practices. |
 | | Second, by favoring cleaner fuels, carbon taxes have the potential to reduce harmful emissions of carbon dioxide – a major contributor to current climate changes – as well as bring about an overall reduction in the use of fossil fuels. |
 | | By replacing the most inefficient taxes with taxes that grow in direct proportion to the energy consumed (and, therefore, in greater proportion to the growth of the economy; i.e., are more elastic), states can address both the growing concerns about environmental quality while improving their existing tax structure. |
| www.serconline.org /carbontaxing/background.html (760 words) |
|