U.S President Obama is now considering imposing a tax on carbon dioxide to alleviate climate change and generate revenue as well. Establishments that emit carbon dioxide such as the power plants, tailpipes and factories will soon be required to pay a carbon tax.
The government believes that this act may reduce the pollution caused by this harmful chemical and provide additional revenue for the government.
"A carbon tax that covered the bulk of (carbon dioxide) emissions or the carbon content of most fossil fuel consumed in the United States could generate a substantial amount of revenue," written in the report Effects of a Carbon Tax on the Economy and the Environment released on Wednesday.
The report also mentioned the findings of the study made by Congressional Budget Office, a government agency that presents economic data to the congress, last 2011. They projected an additional $1.2 billion increase in revenue per year if the government decide to impose at least $20 carbon tax. The carbon dioxide emissions produced by the country will also be reduced by at least 1.25 percent annually.
The carbon tax plan did not make it in Congress in 2010 as majority of the representatives are Republicans. They mentioned that it may affect the businesses and the consumers as well as the brands may need to increase the prices of their products and services to cover the additional tax.
However, climate change is a serious global threat that may lead to more problems if the carbon tax is pushed back again. The report says that it is most likely for the general public to shoulder the additional costs than suffer a more expensive damage in the future.
The report presented by the CBO was requested by Representative Henry Waxman of the 33rd congressional district of California.