Letter: Carbon tax doesn’t add up in the real world

The following money values are for illustration.

The “revenue neutral carbon tax” (RNCT), as usually described, says that all the collected money is fully returned, while both funding and creating new jobs in alternative energies. Say $100 million is collected via a RNCT. So $100 million is redistributed, 10 percent administrative costs are $10 million, and 50 percent ($50 million) goes to funding, thereby also employing people, in new alternative energy sources.

Check the math. There is $100 million in tax income. Expenses are $100 milllion in returns, $10 million for administrative, and $50 million for new alternative energy, for a total of $160 million.

Do unicorns deposit the extra $60 million so that there is no deficit? As soon as RNCT is defined as all collected money is returned, it becomes financially equivalent to perpetual motion since all additional costs are ignored. Stupidity kills, just not fast enough.

PS: A related question. Federal debt increased $7.917 trillion during the Obama presidency. This is equivalent to 7,917 new bridges, Naval ships, full staffing at all national parks, USAF planes, or 100 miles of interstate highway if each of these items cost $1 billion. Where are they?

PSS: $1 billion would pay for 40 Duportail bridges of $25 million each.

This story was originally published January 3, 2018 at 3:02 PM with the headline "Letter: Carbon tax doesn’t add up in the real world."