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PSU Researchers: Carbon Tax would Clean the Air

"PSU researchers: Carbon tax would clean the air, bolster Oregon's budget" Sustainable Business Oregon. March 2013

A Portland State University study found that carbon taxes could reduce Oregon's "distortionary income taxes," an issue that has vexed lawmakers for years, as well as provide new revenue channels.

The study, from the school's Northwest Economic Research Center, maintains that "putting a price on carbon in Oregon can result in reductions in harmful emissions and have positive impacts on the economy."

Oregon's House and Senate are considering four carbon tax-related bills during the current session. Oregon Gov. John Kitzhaber has also backed the notion.

Tom Potiowsky, the former Oregon state economist who leads the Research Center, said a $30 per ton carbon tax would raise $1.1 billion in 2015. If the tax graduates over the years to higher levels — that's how British Columbia approached the levy — the $60 per ton the state would charge in 2025 would bring some $2.1 billion to Oregon's coffers.

The money could help steady Oregon's shaky revenue system. Because Oregon doesn't have a sales tax, state finances are frequently volatile because the government relies heavily on property values and income levels.

Potiowsky's team also determined that reinvesting 10 percent of any carbon tax revenue could generate nearly 2,800 jobs.

Article by Andy Geigerich

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