Finance & Economy

The Congressional Budget Office (CBO) noted Wednesday that a carbon tax could generate “significant” revenues for the United States and avert “catastrophic” effects of climate change.

CBO said in a new report that there are many uncertainties about how to design and implement a carbon tax, but waiting too long to curb greenhouse gas emissions would have clear results.

“[D]elays would increase the expected damage from climate change by increasing the risk of very costly, potentially even catastrophic, outcomes. … In general, the risk of costly damage is higher as the extent of warming increases and as the pace of warming picks up; thus, failing to limit emissions soon increases that risk,” the report said.

Ben Bernanke touted innovation and information technology as drivers of economic change in a Saturday commencement speech at Bard College.

A top wind trade group said Monday that it’s crafting a long-term policy plan that it plans to take to tax-writing committees in the House and the Senate.

The proposal will include “a number of scenarios or strategies,” incoming American Wind Energy Association (AWEA) CEO Tom Kiernan said at the organization’s annual conference in Chicago. AWEA officials will embark on a road show of sorts to get input from industry stakeholders before finalizing a proposal.

But a gradual phase out of a key industry tax incentive floated by AWEA in December is not necessarily the organization’s top option, Kiernan said.

Lawmakers in both parties are already touting their favorite pet projects for inclusion in tax reform.

A Senate Finance Committee white paper on possible federal tax code changes for energy suggested establishing a carbon tax in place of most or all energy tax incentives.

The paper offered the carbon tax with a range of other policy options to help chip away at a Congressional Budget Office-estimated $16 billion of foregone energy-related tax expenditures in fiscal 2013.

The paper, released Thursday, came with the disclaimer that the policy suggestions “do not necessarily have the endorsement” of committee Chairman Max Baucus (D-Mont.) or ranking member Sen. Orrin Hatch (R-Utah).

Legislation that would empower states to tax online purchases cleared a key hurdle in the Senate Monday.

A coalition of “advanced energy organizations” wants the House Ways and Means Committee to phase out permanent energy tax incentives in favor of "self-regulating” benefits that push clean-energy technology.

Advanced Energy Economy (AEE) sent a Monday letter to the tax-writing committee urging lawmakers to make those changes, arguing the existing tax structure buoys energy sources — such as those from fossil fuels — that no longer need federal support.

“On the basis of this framework, we could move the United States toward a more efficient, business-focused energy tax code that spurs innovation, avoids market distortion, and reduces taxpayer burden,” said AEE CEO Graham Richard said in a Monday statement.

While the prospects of Congress taking up tax code reform remain unclear, AEE has a powerful backer in billionaire former hedge fund manager Tom Steyer.

Debt-ceiling politics are back in full force, as House Dems blasted Republicans for pushing legislation to prioritize debt payments.

There’s a tax fight brewing between large beer companies and their smaller craft brethren on Capitol Hill.

President Obama is channeling Jimmy Carter, according to deficit guru Alan Simpson — and that’s a good thing.