Look Out For The Carbon Tax

From the Washington Post: Here’s a riddle: If Congress doesn’t want to raise income tax rates but wants to raise revenue, what can it do?
One answer: Pass a carbon tax.
 A relatively moderate-sized carbon tax could raise $1.25 trillion over the next decade, a huge chunk of the money needed to bring the federal budget deficit under control. And the idea is getting a closer look now that the election is over and the “fiscal cliff” is looming.
Because it would tax fossil fuel use, the carbon tax pleases economists who want to encourage investment and discourage consumption. Climate activists hope it would reduce greenhouse-gas emissions by penalizing the use of coal, oil and natural gas. And for lawmakers opposed to any change in tax rates or deep cuts in spending, the carbon tax could be a lifeline.
“In the general scheme of things, taxes discourage whatever you’re taxing,” said William Pizer, associate professor of economic and environmental policy at Duke University. “If something is discouraged, it might as well be something bad like pollution instead of employment and savings.”
Pizer said that a $20-a-ton tax on carbon dioxide would raise gasoline prices by about 20 cents per gallon and boost electric bills slightly. It could be most efficiently collected “upstream,” at coal mines, oil and gas wells, or terminals for oil tankers arriving at U.S. shores.
There are drawbacks. Higher prices fall most heavily on lower-income earners who spend a larger portion of their pay on fuel. The tax would hurt certain regions more than others. It would need to be tweaked to protect firms that export to countries where companies don’t pay any carbon tax. It would also have to be reconciled with existing carbon trading schemes in the Northeast and California.
“Taxation is a painful thing, but this is one of the least inefficient ways of raising taxes,” said Nick Robins, head of the climate change center for banking giant HSBC. “At a time of low economic growth, it can be quite a good thing because it is taking costs out of the economy. If you can do that, it would be a good thing.” http://www.washingtonpost.com/business/economy/with-fiscal-cliff-looming-carbon-tax-getting-closer-look/2012/11/09/23ab935a-2aad-11e2-96b6-8e6a7524553f_story.html?hpid=z3
A couple of thing stood out in the article:
A moderate sized tax is now considered $1,250,000,000,000?
Why do liberals hate the poor so much as the poor will be hurt the hardest by a carbon tax?
Because the poor will be hurt, welfare payments will go up, some businesses will be forced to close or layoff employees, prices will go up and purchases will go down which means less money collected in sales taxes- so where are the savings?
Even with the tax raising $1,250,000,000,000, it falls far short (about 1/2 short)of the $2,400,000,000,000 the government blew threw with borrowed money in the past 15 months and will fall about 1/2 short of the amount of money the Democrats are asking for in the new debt ceiling request.  So, what's the point of the tax if it won't even help with the deficit in a truly meaningful manner?
If a bank has a Department of  Climate Cahnge", like HSBC does, do you really want to do business with them?
Finally, why are liberals so stupid and ignorant that they think raising the carbon tax will actually help?

h/t Boots and Sabers:  http://www.bootsandsabers.com/index.php