Comment Log Display

The complexity of the proposed regulations for a cap and trade
program clearly illustrates the advantages of a fee and dividend
system.  Issues such as offsets, which raise many very complicated
issues are not present in a F&D program where gradually increasing
fees are set on fossil fuels.  Market manipulation problems are
also avoided.

Other important advantages of F&D are that since the proceeds
collected are returned to the people, there is no depressing
economic effect, a consideration that ARB should definitely
consider given the state of the economy. Moreover, F&D is
politically aceptable to many who oppose cap and trade since F&D is
revenue neutral and can be supported even by those groups that
usually oppose all taxes.

The requirement that 2/3rds of the legislature must approve new
fees or taxes should not inhibit ARB from adopting a clearly
superior program.  The redrawn legislative districts could make
this requirement obtainable even without bipartisan support. 
Moreover, a system that is revenue neutral and  results in a
dividend check in each voter's mailbox would be attractive to many
of those who typically oppose all taxes.

ARB needs to give a fair hearing to a fee and dividend program
before it adopts an incredibly complex and problematic cap and
trade program.