world's economy continues to struggle it has become fashionable in some political circles to advocate the adoption of a type of tax described as a carbon tax as a method of minimizing spiraling government costs. Use of the word, "carbon," is somewhat misleading. The broad meaning of the carbon tax term is to define a tax that is designed to not only raise revenue but also change the behavior of a society's consumers (Baumol, 1972). The theory is to raise the cost of a good or service through the imposition of a carbon tax in an effort to offset the negative effects that the good and service causes. The most obvious example is the use of a carbon tax to fight the effects of pollution. The manufacturer who builds its plant next to a river and proceeds to dump its polluting by-products into said river would ordinarily not suffer any...
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