Cap-and-Trade vs. Carbon Tax

A couple days ago Paul Krugman argued that opposing cap-and-trade was foolish because fighting global warming is so necessary. I agree that it is, but there is a phenomenally better way to achieve the same ends. A carbon tax. The effect of cap-and-trade will be higher energy prices, essentially the same effect as imposing a carbon tax. The difference is that the 'profits' from cap-and-trade will go to the financial system that trades and speculates in the emission permits (and nearly destroyed our whole economy a few months back). Fear of speculation isn't unfounded, it's prescient. A carbon tax isn't an impossible dream, it's the absolutely right policy. Moving from a federal revenue system based on income taxes (and the regressive Social Security tax) to one based on a carbon tax might be the best thing anyone can ever do for this nation and our world. It's worth losing an election over. Sometimes you fight the fight that needs fighting.