In order to circumvent some of the political problems of addressing climate change, the Administration should put before Congress a bill modeled on Australia's recent climate change legislation or a similar proposal. This would implement a straightforward tax on carbon emissions, entirely offset by an equivalent tax cut to either the payroll tax or individual federal income tax.
Climate change has become an increasingly divisive issue. Putting a price on carbon without increasing government revenue offers a compromise that should reduce concerns of job destruction or big-government expansion.