#1 – Bryan Caplan talks about voter irrationality in an an extremely interesting podcast interview, and has convinced me to read his book … eventually.

#2 – Greg Mankiw points to a brief by Gilbert Metcalf on a green tax shift that is designed to be both distributional and revenue neutral. His proposal is to use the revenue from a carbon emissions tax to give a lump sum exemption from the payroll tax of about $3,500. The brief has several very interesting tables on the effect of a carbon tax on the costs of different goods and the distributional effects of those added costs. I especially like lump sum of green tax shifts because they refund tax money in a way that closely matches the harm done by carbon emissions, i.e. everybody roughly equally.

I am happy to point out that the Green Party of Canada has advocated a very similar green tax shift (go to page 18) for quite a while now.

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