Washington Initiative 732

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Washington Initiative 732 (I-732) was a proposed ballot initiative in 2016 to levy a carbon tax in the State of Washington, and simultaneously reduce the state sales tax. It was rejected 59.3% to 40.7%. [1] The measure appeared on the November 2016 ballot. [2] The backers of I-732 submitted roughly 350,000 signatures in December 2015 to certify the initiative. [3]

Carbon tax tax on the carbon content of fuels

A carbon tax is a tax levied on the carbon content of fuels and, like carbon emissions trading, is a form of carbon pricing.

Contents

The initiative was spearheaded by environmental economist Yoram Bauman, a strong advocate of carbon pricing. It was modeled after the British Columbia carbon tax, which was considered "popular across the political spectrum". [4] The carbon tax in British Columbia caused the province's fuel consumption to decrease by 16% and its greenhouse gas emissions to decrease 3.5 times faster than the emissions of Canada as a whole, while maintaining steady economic growth. [5]

Environmental economics is a sub-field of economics concerned with environmental issues. It has become a widely studied topic due to growing environmental concerns in the twenty-first century. Quoting from the National Bureau of Economic Research Environmental Economics program:

... Environmental Economics ... undertakes theoretical or empirical studies of the economic effects of national or local environmental policies around the world .... Particular issues include the costs and benefits of alternative environmental policies to deal with air pollution, water quality, toxic substances, solid waste, and global warming.

Yoram Bauman American economist and stand-up comedian

Yoram Keyes Bauman is an American economist and stand-up comedian.

British Columbia carbon tax

British Columbia's carbon tax and accompanying tax shift has been in place since 2008. It is a British Columbia policy which adds additional carbon taxes to fossil fuels burned for transportation, home heating, and electricity, and reduces personal income taxes and corporate taxes by a roughly equal amount. The carbon tax is collected at the point of retail consumption. British Columbia's policy is unique in North America; only Quebec has a similar retail tax but it is set at a much lower rate and does not include a matching tax shift. Unlike most governments, British Columbia's electricity portfolio largely consists of hydroelectric power and their energy costs, even with the tax, are lower than most countries.

Ballot measure summary

The ballot measure summary as written by the Secretary of State of Washington:

The Secretary of State of Washington is one of the elected constitutional officers of the U.S. state of Washington. The duties of the office are specified in Article III, Section 17 of the Washington State Constitution and Chapter 43.07 of the Revised Code of Washington. The Secretary of State is second in the line of succession to the Office of the Governor. There have been 15 Secretaries of State since Washington became a state.

"This measure would impose a carbon emission tax on the sale or use of certain fossil fuels and fossil-fuel-generated electricity, at $15 per metric ton of carbon dioxide in 2017, and increasing gradually to $100 per metric ton (2016 dollars adjusted for inflation), with more gradual phase-in for some users. It would reduce the sales tax rate by one percentage point over two years, increase a low-income sales tax exemption, and reduce certain manufacturing taxes. [6] "

Carbon dioxide chemical compound

Carbon dioxide is a colorless gas with a density about 60% higher than that of dry air. Carbon dioxide consists of a carbon atom covalently double bonded to two oxygen atoms. It occurs naturally in Earth's atmosphere as a trace gas. The current concentration is about 0.04% (410 ppm) by volume, having risen from pre-industrial levels of 280 ppm. Natural sources include volcanoes, hot springs and geysers, and it is freed from carbonate rocks by dissolution in water and acids. Because carbon dioxide is soluble in water, it occurs naturally in groundwater, rivers and lakes, ice caps, glaciers and seawater. It is present in deposits of petroleum and natural gas. Carbon dioxide is odorless at normally encountered concentrations. However, at high concentrations, it has a sharp and acidic odor.

Provisions

Initiative 732 contained four provisions: [7]

Earned income tax credit

The United States federal earned income tax credit or earned income credit is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children. For a person or couple to claim one or more persons as their qualifying child, requirements such as relationship, age, and shared residency must be met. In the 2013 tax year, working families, if they have children, with annual incomes below $37,870 to $51,567 may be eligible for the federal EITC. Childless workers that have incomes below about $14,340 can receive a very small EITC benefit. U.S. tax forms 1040EZ, 1040A, or 1040 can be used to claim EITC without qualifying children. To claim the credit with qualifying children, forms 1040A or 1040 must be used along with Schedule EITC attached.

Supporting Organizations

The primary sponsor of Initiative 732 was CarbonWA, a group founded by environmental economist Yoram Bauman to promote carbon pricing. The Audubon Society was also a major proponent of Initiative 732, "Audubon Washington believes Initiative 732 provides swift and effective action to reduce carbon pollution". [8] Other organizations that supported Initiative 732 included the Sightline Institute, [9] and the Citizens' Climate Lobby. Other supporters include Washington State legislator Joe Fitzgibbon (D), Washington State Senator Steve Litzow (R), Washington State Senator Joe Fain (R), Washington State Senator Cyrus Habib (D), [10] and the editorial board of The Olympian. [11] Climate scientist James Hansen, who has been involved with the Citizens' Climate Lobby for many years, strongly supported the proposal. [12]

National Audubon Society non-profit organisation in the USA

The National Audubon Society (Audubon) is a non-profit environmental organization dedicated to conservation. Located in the United States and incorporated in 1905, Audubon is one of the oldest of such organizations in the world and uses science, education and grassroots advocacy to advance its conservation mission. It is named in honor of John James Audubon, a Franco-American ornithologist and naturalist who painted, cataloged, and described the birds of North America in his famous book Birds of America published in sections between 1827 and 1838.

Citizens' Climate Lobby (CCL) is an international grassroots environmental group that trains and supports volunteers to build relationships with their elected representatives in order to influence climate policy. The CCL is a registered 501(c)(4) with approximately $300 thousand in revenue in the United States in 2015. Operating since 2007, the goal of CCL is to build political support across party lines to put a price on carbon, specifically a revenue neutral carbon fee and dividend (CF&D) at the national level. CCL is supported by notable climate scientists James Hansen, Katharine Hayhoe, and Daniel Kammen. CCL's advisory board also includes former Secretary of State George P. Shultz, former US Representative Bob Inglis, actor Don Cheadle, and RESULTS founder Sam Daley-Harris.

Joe Fitzgibbon State Representative,, 34th District, Burien

Joe Fitzgibbon is an American politician of the Democratic Party. He is a member of the Washington House of Representatives, representing the 34th district.

The backers of initiative 732 claimed that I-732 "taxes carbon to fight climate change, boost clean energy, & save the environment for future generations". [13]

Non-Supporting Organizations

Several environmental organizations chose to make a recommendation to "not support" the measure, as opposed to "support" or "oppose", including the Sierra Club [14] , 350.org Seattle (who originally supported the measure, and later rescinded their support) [15] , and Climate Solutions [16] .

Common points made in their statements included concerns that the initiative would result in a budget shortfall, and concerns over how the initiative would spend carbon fee receipts, e.g., Climate Solutions stated: [17]

I-732 does not address the needs of communities hit hardest by pollution and the workers, energy-intensive businesses and others that will be most affected by the transition off of fossil fuels. These communities and sectors need investment in both infrastructure and services to address the health and environmental impacts of fossil fuel pollution and to enable them to benefit equitably from the transition to clean energy.

Opposing Organizations

Opponents to Initiative 732 included the Washington State Labor Council, stating: "I-732 would send Washington in the wrong direction and create more damaging austerity choices", [18] , the Association of Washington Businesses, [19] and Longview Daily News. [20]

Several organizations opposed the measure from an "environmental justice" perspective, or with a reference to the necessary breadth of the supporting coalition, including Front and Centered (formerly: Communities of Color for Climate Justice) [21] , and the Washington Environmental Council, stating: [22]

We have learned from past attempts in state and around the world, that in order to pass transformational carbon pollution policy and then defend against the oil industry’s attempts to repeal the law we must work with a broad, politically-powerful coalition. Washington Conservation Voters and Washington Environmental Council are part of a statewide coalition of leaders and grassroots activists representing communities of color, health organizations, labor groups, businesses, the faith community and others who are working together to develop, pass and defend a policy that will stand for the long haul in Washington and serve as an example for other states to follow.

Aftermath

Although I-732 failed to pass, Carbon Washington continued to work to put a price on carbon emissions in the State of Washington. They worked with others to support Washington Initiative 1631, a carbon tax measure that appeared on the ballots in 2018 [23] [24] but was also rejected.

See also

Related Research Articles

References

  1. https://www.nytimes.com/elections/results/washington-ballot-measure-732-create-carbon-emission-tax
  2. "Washington Carbon Emission Tax and Sales Tax Reduction, Initiative 732 (2016)". Ballotpedia. Lucy Burns Institute . Retrieved 30 July 2018.
  3. "I-732, I-735 sponsors turn in signatures". blogs.sos.wa.gov. Retrieved 2016-08-07.
  4. Roberts, David (18 October 2016). "The left vs. a carbon tax". Vox.com . Vox. Retrieved 25 October 2016.
  5. Fragroso, Alejandro Davila (31 March 2016). "British Columbia's Carbon Tax Has Been So Successful That Businesses Want To Increase It". ThinkProgress . Center for American Progress . Retrieved 25 October 2016.
  6. "Initiatives & Referendums - Elections & Voting - WA Secretary of State". www.sos.wa.gov. Retrieved 2016-08-07.
  7. "Carbon Washington | Our Policy" . Retrieved 2016-08-07.
  8. "Why We Support I-732". 2016-06-29. Retrieved 2016-08-07.
  9. "Weighing CarbonWA's Tax Swap Ballot Initiative". Sightline Institute. Retrieved 2016-08-07.
  10. "Carbon Washington | Endorsements" . Retrieved 2016-08-07.
  11. "Carbon tax proposal can move climate needle" . Retrieved 2016-08-07.
  12. Hansen, James. "Washington can lead on climate change by passing I-732". Seattle Times . Retrieved 25 October 2016.
  13. "Yes On Initiative 732". Carbon Washington. Retrieved 2016-08-07.
  14. "Sierra Club Position on Carbon Washington Ballot Initiative 732" . Retrieved 2018-11-02.
  15. "Rescinding our endorsement of I-732" . Retrieved 2018-11-02.
  16. "Why we cannot support Initiative 732, but will not actively oppose it" . Retrieved 2018-11-02.
  17. "Why we cannot support Initiative 732, but will not actively oppose it" . Retrieved 2018-11-02.
  18. "WSLC opposes Initiative 732 carbon tax | The Stand". www.thestand.org. Retrieved 2016-08-07.
  19. "Employers can't afford to sit out election" . Retrieved 2016-08-07.
  20. "No on Initiative 732" . Retrieved 2016-08-07.
  21. "I-732 Blocks Progress on Climate Justice" . Retrieved 2018-11-02.
  22. "WEC Statement on I-732" . Retrieved 2018-11-02.
  23. "We support the carbon fee initiative I-1631 + news". Carbon Washington. Retrieved 30 July 2018.
  24. "Washington Carbon Emissions Fee and Revenue Allocation Initiative (2018)". Ballotpedia. Retrieved 30 July 2018.