What questions do you have about how CCL proposes the dividend will be distributed back to American households?
9 Replies
My question relates to the collection of the fees. Recently at a tabling event at a conservative gathering I was asked what govt agency will collect the fees, and how much will it add to their size/cost. I replied that I understood that the total administrative cost will be 3%. The gentleman was incredulous. How do you recommend that I should answer this should it come up again?
Hi - If the dividend is treated as taxable income (as recommended in the PAYGO laser talk), I suspect the dividend would count against a retirees MAGI for Medicare surcharge purposes - is this correct? Would any of the other options discussed in the PAYGO laser talk lead to the dividend not be counted as MAGI for Medicare surcharge purposes?
thanks, doug ray
thanks, doug ray
Why don't the totals on the bar charts add up to 100% in the Household impact study ?
Hi Dan Marshall, thanks for the question!
The bill establishes a "Carbon Dividend Trust" within the Treasury Department that collects the fees. Dividends will be distributed by the IRS, you can read more about this in the Dividend Delivery Study.
As far as cost, any administrative needs will be paid for by the revenue collected from the carbon fee. Administrative costs may not exceed 8% in the first five years and may not exceed 2% in the years thereafter. This higher allowed allocation for the first five years was because we estimated it may take some upfront costs to get the dividend payment program going. This cost may be even smaller now that the government had to figure out how to distribute COVID-19 stimulus checks.
Best,
Adeline, CCL Government Affairs Coordinator
The bill establishes a "Carbon Dividend Trust" within the Treasury Department that collects the fees. Dividends will be distributed by the IRS, you can read more about this in the Dividend Delivery Study.
As far as cost, any administrative needs will be paid for by the revenue collected from the carbon fee. Administrative costs may not exceed 8% in the first five years and may not exceed 2% in the years thereafter. This higher allowed allocation for the first five years was because we estimated it may take some upfront costs to get the dividend payment program going. This cost may be even smaller now that the government had to figure out how to distribute COVID-19 stimulus checks.
Best,
Adeline, CCL Government Affairs Coordinator
Hi Doug Ray,
Excellent question! While the dividend itself is taxable in order to satisfy PAYGO rules, increased income due to receiving the dividend cannot bump someone into a higher overall income tax bracket and it has no effect on any welfare programs or eligibility.
Here's the corresponding bill text:
FEDERAL PROGRAMS AND FEDERAL ASSISTED PROGRAMS.—The carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.
Best,
Adeline, CCL Government Affairs Coordinator
Excellent question! While the dividend itself is taxable in order to satisfy PAYGO rules, increased income due to receiving the dividend cannot bump someone into a higher overall income tax bracket and it has no effect on any welfare programs or eligibility.
Here's the corresponding bill text:
FEDERAL PROGRAMS AND FEDERAL ASSISTED PROGRAMS.—The carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.
Best,
Adeline, CCL Government Affairs Coordinator
Thank you!
On Jun 16, 2020, at 11:13 AM, Adeline DeYoung via CCL Community <cclcommunity@citizensclimate.org> wrote:
Hi Doug! Instant Alert
Re: Dividend Questions in General Discussions General in
Posted on June 16, 2020 at 11:13 AM
Adeline DeYoungHi Doug Ray,
Excellent question! While the dividend itself is taxable in order to satisfy PAYGO rules, increased income due to receiving the dividend cannot bump someone into a higher overall income tax bracket and it has no effect on any welfare programs or eligibility.
Here's the corresponding bill text:
FEDERAL PROGRAMS AND FEDERAL ASSISTED PROGRAMS.—The carbon dividend amount received by any individual shall not be taken into account as income and shall not be taken into account as resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.
Best,
Adeline, CCL Government Affairs Coordinator
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I have a question about the revenue estimates. I found a mention of years 1 ($78B) and 2 ($139B), but not 3 and 4. They must be somewhere on the site. Help?
Hi Brian Winters,
You can see these numbers in the Energy Innovation & Carbon Dividend Act Dataset. The amount you're looking for are on the third tab labeled "tables".
You can see these numbers in the Energy Innovation & Carbon Dividend Act Dataset. The amount you're looking for are on the third tab labeled "tables".
We are working on a comment advocating support for federal carbon fee and dividend for a state agency climate action plan. We're wondering if there are any updates to dividend delivery information since Allen Lehrman's 2018 study? In particular, how might US experience with pandemic relief fund distribution affect the ease of dividend distribution. Are there any new studies that we can highlight on this topic? Thanks!
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