Carbon Tax: Get Credit for Helping to Save the Environment

These days, the government is cracking down heavily on environmental issues - with good reason! And while all go-green initiatives are important, one primary concern is the consumption of carbon. Hence, the carbon tax, a tax on the carbon content of fuels, essentially on the carbon dioxide emissions from burning fossil fuels.  

   

So how does carbon impact the environment? Carbon and hydrogen atoms are present in every fossil fuel — such as coal, oil and gas. Essentially all carbon atoms are converted to carbon dioxide when the fuel is burned. Carbon dioxide rises in the atmosphere and remains resident there, trapping heat re-radiated from Earth’s surface, and causing global warming and other harmful climate change.  

   

To combat such things from occurring, a carbon tax is effectively a tax on the use of fossil fuels. The tax on carbon would effectively raise the price of using energy for businesses and individuals, encouraging them to reduce their consumption. As a result, it has been heavily opposed by some politicians and interest groups. 

   

That being the case, it is possible to gain a tax credit for carbon reduction. And you can get twice as much credit if the carbon is not used to extract natural gas or oil once captured. This suggests that the carbon reduction credit could be used to support additional petroleum exploration that releases carbon into the atmosphere. 

   

Overall, to deal with climate change, it is necessary to trap carbon produced in manufacturing. Clean energy production is not ramping up quickly enough to reduce the carbon present in the atmosphere. That’s why the IRS has created carbon reduction credits, which provide a tax break for manufacturers who trap the substance. Additionally, the Treasury proposed removing tax benefits for oil and gas production. 

   

Are you going green? Some simple ways to incorporate clean energy into your daily life include the following: 

   

1. Recycle as much as possible, and stray away from plastic. 
2. Utilize solar and wind energy. If you live in a place, like Arizona, which is notorious for its heat waves, you might as well capture some of that sun and use it to your benefit.  
3. Use less electricity and drive vehicles that get better gas mileage. 

   

What other ways are you helping the environment?