Pigou?

Greg Mankiw likes Pigou, Others don’t. What if I propose something which is both better and worse, at the same time? Will I been honored, or pillared? You Kids will be able to understand the danger of being different.

Opponents to a Pigovian tax on Energy ask how it can be determined, without the avarice of Special Interests interjecting their evil designs, while the Planners cannot adequately decide the proper size or Percentage that the energy tax should take. Pro-Pigovians say any form of tax will have beneficial effect, and functionally, any level below economic retardation has benefit.

My Special Case Pigovian Taxation:

The Pigovian tax should be passed, but not allowed to victimize the Consumer. We also need a Forced Savings plan in this Country, to care for all the Costs of Ageing. Here is my law for Pigovian taxation of energy:

All revenues collected are to accrue to the Consumer’s own personal Saving account (We are talking Credit Card style Accounting here). The Tax will be exactly equal to the Cost of the Energy source, and all Proceeds from the Tax will be deposited in the personal Savings accounts. No Withdrawals will be allowed for at least one decade past their deposit, and the Federal and State Governments must utilize this Credit source before turning elsewhere. All personal Savings accounts will receive equitable Interest from deposits consistent with current lending rates available (Interest will be deposited in the accounts every Quarter).

Consumers could determine how much Energy they could afford to consume. Consumers would have an effective form of forced Savings imposed upon them. Most of the Cost of the Tax would be assumed by the Energy Producers, through loss of Product sales or lower Pricing of Energy. The question remains whether this equal Tax and Cost is economically viable. The answer states the Cost of Energy in Production activities is high, but under 20% of total Cost; this implies that the equality of Tax and Energy Cost can be maintained without economic deterioration. I also can hide from Those who would crucify me. lgl