Dingell withdraws idea of carbon tax

House Energy and Commerce Committee Chairman John Dingell (D-Mich.) said Tuesday that he is no longer contemplating a “carbon tax” as a way to reduce greenhouse gas emissions.

“Times have changed; our economy has taken a hard downward turn and now is not the time for us to put any additional financial burden on the working families of Michigan or this nation,” Dingell said.

{mosads}Dingell’s bill would have raised taxes on carbon dioxide emissions and on gasoline, and lowered the tax deduction for large homes that eat up a lot of energy as a way to lower the greenhouse gases blamed for warming the planet.

Most economists agree that a tax hike is the most efficient way to lower emissions. But policymakers seem intent on avoiding any potential political fallout that could come with a big tax increase and instead favor a cap-and-trade program.

Dingell said his bill generated 2,900 comments. While more than 61 percent of respondents answered yes to the question of whether they approved of a carbon tax, Dingell declared the proposal officially dead Tuesday.

“The reality is that this proposal is off the table for now,” Dingell said.