James Kwak: Who Cares About the National Debt?:
Not Greg Mankiw [who] wrote a colum… laying out the arguments for a carbon tax… well known and… obviously correct…. Many people think that the national debt is a serious long-term problem…. According to Mankiw….
If the Democratic sponsors conceded to using the new revenue to reduce personal and corporate income tax rates, a bipartisan compromise is possible to imagine.”
Republicans like to say that they are opposed to deficits…. But when confronted with a proposal that makes perfect economic sense and reduces deficits, they reject it…. Mankiw’s argument… is that a carbon tax is good, but additional tax revenue that would reduce the deficit is bad. This is absurd…. Unfortunately, not just the Republican congressional delegation but also one of the party’s most prominent economists has accepted this absurdity as a fact.