Plan Uses Taxes to Fight Climate Change

Dingell will offer a "discussion draft" outlining his tax proposals on Thursday, the same day that President Bush holds a two-day conference to discuss voluntary efforts to combat climate change.

-A 50-cent-a-gallon tax on gasoline and jet fuel, phased in over five years, on top of existing taxes.

-A tax on carbon, at $50 a ton, released from burning coal, petroleum or natural gas.

-Phaseout of the interest tax deduction on home mortgages for homes over 3,000 square feet. Owners would keep most of the deduction for homes at the lower end of the scale, but it would be eliminated entirely for homes of 4,200 feet or more.

He estimates that would affect 10 percent of homeowners. He says "it's only fair" to tax those who buy large suburban houses and create urban sprawl. Historic and farm houses would be exempted.

Some of the revenue would be used to reduce payroll taxes, but most would go elsewhere including for highway construction, mass transit, paying for Social Security and health programs and to help the poor pay energy bills.

Sounds good to me. Something tells me it has no shot though.

via The Washington Post