The idea of the Carbon Tax is to increase the cost of fossil fuels - or at least the burning of fossil fuels - in order to discourage their use. This is a good idea for a number reasons regardless of your stance on anthropogenic global warming. The contribution of fossil fuels to pollution, terrorism, the Bush Administration and all sorts of other evils is well established.
My question is in regards to how much of a carbon tax were we planning on imposing. This idea had its genesis when a barrel of oil was somewhere in the $20 range. Oil just bounced off $140 per barrel. Were we planning on establishing a tax that would make oil 600% more expensive? I find that very difficult to believe, but I never did see any hard numbers from the Carbon Tax people stating where they'd be placing the tax and how much it would have to be.
My impression is that even with a complete shift from corporate and personal income taxes all the way over to a carbon tax, the effective cost of oil would not be more than the current price.
And is the current price enough to change our use of fossil fuels? Just barely.
And does it make sense to still support a carbon tax, given the crushing effect the current price of oil is already having on the lives of lower income people and the economy in general? My suspicion is that introducing a carbon tax now, piling on top of the soaring cost of oil, would prove to be destructively shocking to our way of life.