by Jason Burke Murphy | Jan 30, 2019 | News
The Taoiseach (Prime Minister) of Ireland, Leo Varadkar, has just endorsed a carbon tax in which all funds go to a direct cash dividend. This came in a letter to the Green Party of Ireland and has been confirmed by the press. Varadkar was responding to questions posed by Eamon Ryan during a session of the Dáil (Parliament). Ryan calls for “an increase in [the] carbon tax in which every single cent would go back to the Irish people—a dividend.” Eamon Ryan is the Green Party’s leader in the Dáil (Parliament).
Ryan considers Varadkar’s response to be an endorsement of the Green proposal. The Green Party has issued a press release. In it, they express pleasure to hear that the government likes combining a carbon tax with a cash dividend but stress that they consider alternative energy and transportation to be their highest priority in addressing climate change.
In his address to the Dáil and in an interview on the Irish Times’ “Inside Politics” podcast, Ryan calls for an increase of €20 per ton in the carbon tax, with an increase of €5 per ton each year until it reaches €90 per ton. The tax revenue would be entirely returned to the public as a dividend. (If you consult the podcast, discussion of the carbon tax and dividend begins at 20 minutes and forty seconds).
Illustration posted by Eamon Ryan on his Twitter feed.
“Every single cent that will be raised will be returned with a check in the post.” In the podcast, journalist Hugh Linehan makes it clear that this would be cash that goes directly to everyone in Ireland. Ryan points out that those with lower incomes would come out with more cash than they have to pay in increased taxes. He sees this as a way to avoid a popular revolt against a carbon tax like the one Emmanuel Macron has seen in France. He hopes that this will retire the debate over the carbon tax and achieve larger changes in energy and agriculture. “[The carbon tax and dividend] will deliver maybe five, ten, fifteen, or twenty percent of the change we need.”
The Irish Times is considered the paper of record in Ireland.
The Green Party (Camhaontas Glas) has two members of the Dáil Éireann. If they gain more seats in the next election, they are considered a likely coalition partner in a future government.
The current government is run by Fine Gael, a party that caucuses with Conservative parties in Europe but seeks to be seen as pragmatically responsive to poverty and ecological issues. Ireland has seen campaigns to prevent increased water charges and to promote public action on housing.
The Irish Times has surveyed government leaders in Ireland who seek to emphasize that carbon tax increases would be “revenue neutral”, returning all funds to citizens as a dividend. The dividend is seen as a way to meet the climate change obligations set by the European Union without harming lower-income people.
In the discussion of the carbon tax and dividend, there is no discussion from the government or the opposition parties of the carbon tax and dividend as a basic income. Green Party Leader Eamon Ryan is very careful to stress that the dividend is just a small part of a plan to make Ireland ecologically responsible.
A year ago, the Irish Times ran an opinion piece in which Ian Goldin presumes a basic income would be financial destructive and would replace existing programs. Basic Income News columns have demonstrated the method Goldin uses to make his calculation is flawed. The mistake here is to calculate gross costs instead of net costs. This means that basic income can be implemented without cuts in other social provisions. Calculations show that the poverty rate could be brought down to zero if three to four percent of a country’s GDP is dedicated to a basic income.
The idea that a carbon dividend is a basic income has not arisen in the Times or in the debate in the Dáil. The term “basic income” has not come up in the discussion of the carbon tax. This reflects a pattern found elsewhere. If a dividend is debated as an answer to poverty, it faces more scrutiny than if it is debated as a repair for the regressive effect of another policy.
Basic Income Ireland and Social Justice Ireland promote the idea that basic income has emancipatory potential. The idea that three to four percent of a country’s GDP could fund a dividend that abolishes poverty is still not being debated by any of the parties currently in the Dáil.
by Claire Bott | Jun 27, 2018 | News
The Next System Podcast, which states that it “seeks to understand contemporary challenges, interrogate emerging possibilities, and begin imagining the next system”, recently interviewed Jeremiah Lowery and Camila Thorndyke of the Chesapeake Climate Action Network about their “Put a Price on it, D.C.” campaign. This campaign aims to institute a local carbon tax on dirty energy sources and redistribute the money raised largely via regular payments to residents, thus creating a local universal basic income (UBI).
Thorndyke says, “we’ve chosen to go with the most progressive revenue allocation possible”, explaining that, as the tax would mean a rise in energy prices, failing to pass on the money to residents would mean that “we’d be trying to solve the climate crisis off the backs of the poor”. Lowery adds, “increasing inequality actually leads to more devastation and more climate change.
Edited by: Caroline Pearce
by Claire Bott | Jun 26, 2018 | News
The Next System Podcast, which states that it “seeks to understand contemporary challenges, interrogate emerging possibilities, and begin imagining the next system”, recently interviewed Jeremiah Lowery and Camila Thorndyke of the Chesapeake Climate Action Network about their “Put a Price on it, D.C.” campaign. This campaign aims to institute a local carbon tax on dirty energy sources and redistribute the money raised largely via regular payments to residents, thus creating a local universal basic income (UBI).
Thorndyke says, “we’ve chosen to go with the most progressive revenue allocation possible”, explaining that, as the tax would mean a rise in energy prices, failing to pass on the money to residents would mean that “we’d be trying to solve the climate crisis off the backs of the poor”. Lowery adds, “increasing inequality actually leads to more devastation and more climate change”.
The podcast can be accessed here.
More information at:
The Next System Project webpage
The Next System Podcast “Episode 3: Carbon tax & Social Dividends w/ Jeremiah Lowery & Camila Thorndike” information and transcript
Edited by: Caroline Pearce
by Andre Coelho | May 18, 2017 | News
The United States Carbon Tax Center (CTC) has just released a new report, showing that eight USA states are ready to implement a carbon tax, and twelve others are building towards it. This comes in a time when the Trump Administration unwinds recent progresses related to climate change policy in the USA.
The CTC has prepared a toolkit, designed to help advocates for carbon taxes win support in their respective states. CTC’s director Charles Komanoff sets the tone of urgency: “now we need to get it to as many people as possible in the states where we have the greatest chance of victory, and fast”.
The report examines the economic, political and environmental situation in all 50 USA states, in an attempt to determine the regions where the best possibilities are to enable policies that can dramatically reduce carbon emissions. In the report and elsewhere, serious consideration is being given to turn this carbon tax revenue into a social dividend, or a kind of basic income.
Already in the Canadian province of British Columbia a carbon tax policy is in place since 2008, and has been very successful at cutting carbon emissions. According to another CTC report, released in 2015, the British Columbia region has seen per capita carbon emissions decrease 3.5 times faster than the rest of Canada, while still growing in an economic sense. Based on this successful implementation, Prime Minister Justin Trudeau progressive government is determined to take carbon taxation onto the national level. In October 16th 2016, Trudeau boldly told MPs in the Canadian House of Commons (as reported in the CPC website) : “If neither price nor cap and trade is in place by 2018, the government of Canada will implement a price in that jurisdiction”. The idea is to start at 10 CAN$/tonne CO2 in 2018, gradually increasing up to 50 CAN$/tonne CO2 in 2022.
More information at:
Courtnet Weaver, Barney Jopson and Ed Crooks, “Trump unwinds Obama actions on climate change”, Financial Times, March 28th 2017
Yoram Bauman and Charles Komanoff, “Opportunities for carbon taxes at the state level”, Carbon Tax Center, April 2017
by Kate McFarland | Feb 11, 2017 | News
A group of prominent Republicans has released a proposal for a carbon tax and dividend as an alternative to the Obama administration’s regulation-based approach to mitigating climate change.
The proposal would provide Americans with a small basic income, as it calls for revenue from the tax to be “returned to the American people on an equal and quarterly basis.”
A carbon tax (or fee) and dividend has often been noted as a possible means of financing a basic income in the United States, endorsed by groups such as the Citizens’ Climate Lobby and Chesapeake Climate Action Network and even recommended by the California State Senate in an August 2016 vote.
While campaigners typically focus on the taxation of carbon as a strategy to mitigate climate change, basic income supporters call attention to the “dividend” component: in most proposals, revenue from the carbon tax would be distributed to all individuals in uniform cash grants paid out on a regular basis (e.g. monthly or quarterly). The amounts of dividends vary across specific proposals, but are small, relative to a full-fledge liveable basic income. For example, the California Senate resolution was estimated to lead to payments averaging $288 per month to family of four. And economist James K. Boyce and With Liberty and Dividends for All author Peter Barnes argue for a $200 monthly dividend to individuals, funded by taxes on pollution and other rents from “universal assets”. However, dividends funded by a carbon tax meet the main criteria for a basic income: they are paid in cash, with no strings or conditions, to all members of a community on a regular basis.
A group of prominent US Republicans has now issued a call for a carbon tax and dividend, which they present as a “free market” solution to climate change.
The Climate Leadership Council (CLC) includes, among others, two former Secretaries of State (James Baker III and George Shultz), a former Secretary of the Treasury (Henry Paulson Jr), and two former Chairmen of the President’s Council of Economic Advisers (Martin Feldstein and Greg Mankiw).
The CLC’s proposal, laid out and defended in “The Conservative Case for Carbon Dividends” (February 2017), describes its dividend proposal as follows:
All the proceeds from this carbon tax would be returned to the American people on an equal and quarterly basis via dividend checks, direct deposits or contributions to their individual retirement accounts. In the example above [a carbon tax beginning at $40 per ton and increasing over time], a family of four would receive approximately $2,000 in carbon dividend payments in the first year. This amount would grow over time as the carbon tax rate increases, creating a positive feedback loop: the more the climate is protected, the greater the individual dividend payments to all Americans. The Social Security Administration should administer this program, with eligibility for dividends based on a valid social security number.
In justifying the dividend, the CLC states, “We the People deserve to be compensated when others impose climate risks and emit heat-trapping gases into our shared atmosphere” — a claim reminiscent of much discourse surrounding basic income.
The CLC also notes that the dividend would be especially beneficial to poor Americans: “The Department of Treasury estimates that the bottom 70% of Americans would come out ahead under such a program. Carbon dividends would increase the disposable income of the majority of Americans while disproportionately helping those struggling to make ends meet.”
The CLC’s proposal has gained the support of other advocates for a carbon tax and dividend.
In remarks to CNN, the Citizens’ Climate Lobby spokesperson Steve Valk called the proposal “an aggressive, properly designed carbon tax that employs the power of the free market to do the work is more effective and efficient than regulations.” Peter Barnes, whose 2014 book With Liberty and Dividends for All helped to popularize the idea of pollution taxes and dividends, also welcomes the conservatives’ proposal. Barnes states:
“This is a real step forward for conservatives. They are proposing to pay dividends to all Americans with money generated by pricing a previously unpriced common asset, the air we all breathe. These eminent Republicans effectively agree that the air belongs to everyone, one person one share. In this sense they are heirs to the late Republican governor of Alaska, Jay Hammond, who created the Alaska Permanent Fund on the same premise, with oil rather than air as the co-owned asset.”
Michael Howard, Professor of Philosophy at the University of Maine and Chair of the US Basic Income Guarantee Network, has written a Basic Income News feature in response to “The Conservative Case for Carbon Dividends.” Howard calls the publication a “very welcome development” in both the fight against climate change and the movement for basic income. A carbon tax and dividend, he claims, is “closest analogue on the national scale to Alaska’s Permanent Fund Dividend that we can hope for in the near term.”
Other responses, however, have been less enthusiastic.
In particular, some environmental advocates denounce the proposal’s demand that existing regulations on pollution be repealed. The National Resources Defense Council, for example, released the following statement in response to the CLC:
What’s important is that we cut carbon pollution fast enough to avoid the worst impacts of climate change. Putting a price on carbon could be an important part of a comprehensive program. It can’t do the job alone, though, and is not a replacement for carbon limits under our current laws.
Likewise, Howard agrees that “unless the carbon tax is set high enough and is assured of rising regularly, to give away the EPA’s authority to regulate carbon emissions might be a fool’s bargain,” and doubts that carbon tax alone is sufficient to combat climate change. As he notes in his Basic Income News feature, reduced consumption, development of alternative technologies, and assistance to poor countries in their transition to non-carbon energy sources might be necessary components of the solution.
Members of the CLC met with White House officials on Wednesday, February 8 to present the proposal.
However, the White House has yet to comment on any planned action, and most commentators agree that it is unlikely the Trump administration will pursue any climate legislation (even if that legislation is proposed and defended by prominent Republican statesmen) in the foreseeable future.
More information:
Climate Leadership Council, “The Conservative Case for Carbon Dividends,” February 2017.
Martin S Feldstein, Ted Halstead, and N Gregory Mankiw, “A Conservative Case for Climate Action,” The New York Times (op-ed), February 7, 2017.
Chris Mooney and Juliet Eilperin, “Senior Republican statesmen propose replacing Obama’s climate policies with a carbon tax,” The Washington Post, February 8, 2017.
John Schwartz, “‘A Conservative Climate Solution’: Republican Group Calls for Carbon Tax,” The New York Times, February 7, 2017.
Reviewed by Dawn Howard
Pollution photo CC BY-NC 2.0 Christina Carter
