| Comment | I am writing to convey my strong preference for a carbon tax over a
cap-and-trade system. The main reasons for this preference are:
Because any cap becomes not just a maximum, but also a minimum.
Because, as the recent economic turmoil underscores, it is very
hard to set the correct cap. Because any uncertainty in the future
costs of permits could make it difficult to finance long-term
carbon reduction projects.
In the event that a cap-and-trade system is used, I would like to
express my preference for auctioning as large a percentage as is
feasible, and doing so as soon as possible.
In the case that either a carbon tax or auctioned permits are in
the plan, the vast majority of the proceeds should be rebated
equally per capita to all California residents (with perhaps a 50%
reduced share going to residents who are legal non-citizens).
Finally, in order to keep California business competitive, there
should be a border tax adjustment.
Thank you for your time,
bill
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