Daniel Greenwood's Climate Chronicles

America's Secret Anti-Environment Tax: The AMT

America's Secret Anti-Environment Tax: The AMT

The Alternative Minimum Tax doesn't seem like an environmental issue. But it is. The AMT has become a secret tax on cities.

Cities are more energy efficient and contribute to global warming less than suburbs. Any solution to our oil addiction and our excessive dependence on greenhouse gas producing fuels will require more mass transit and denser communities.

We should, in short, be encouraging people to move to cities, not charging them extra to do so.

Yet, families with a professional salary living in high-cost urban areas are likely to discover that they are subject to the AMT, and that under the AMT, state income and property taxes are not deductible. Not only is the cost of taxes higher to live in high-service cities, but the AMT demands also that you pay federal taxes on money you've already paid in state taxes.

Restoring Public Service to Private Enterprise

Restoring Public Service to Private Enterprise

For years, we've been engaged in a massive de-regulatory enterprise -- dismantling the government's control over the market -- because we were assured that markets get it right, and government messes things up.

But markets will never eliminate pollution. So long as it costs money to reduce emissions or even to change over to new energy sources, but it is free to continue to dump hot-house gases into the atmosphere, profit seeking companies will pollute.

Any serious movement to protect us from global climate change must start by learning how to harness markets to the side of climate protection instead of climate destruction.

The task is overwhelming, but it is not impossible. The first step is to understand how markets really work -- when they get things right and when they don't -- and to elect a government that is willing to use its powers to press markets in the right direction and stop them from careening out of control in the wrong ones. Markets are enormously powerful tools for human welfare -- but without guidance, they are no more likely to get us where we want to go than a car without a driver.