In this NY Times Op-Ed, Congressman Inglis and Aurthur Laffer suggest taxing carbon emissions but cutting income or payroll tax by the amount of revenue made from the new tax. Tax more of what we don't want (pollution) and tax less of what we do (income/jobs). It sounds so simple and policies that make great economic sense often are, but are usually blurred by politics.
http://www.nytimes.com/2008/12/28/opinion/28inglis.html?_r=1&partner=permalink&exprod=permalink
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