Obama Is Using Iran Carbon Tax As A Model Of How To Con People Into Higher Energy Taxes
“Actively manage the political economy of reform. Managing the political economy of reform also entails measures that target those segments of the population that would otherwise oppose reforms. For example, in 2010 the Islamic Republic of Iran increased domestic energy prices by up to 20 times, reducing fossil fuel subsidies by some $50 billion–$60 billion. It offset them with $30 billion in cash transfers that benefited 80 percent of its population, thereby addressing the fact that opposition to the reform of such subsidies usually comes from the middle class. The combination of cash transfers with a well-orchestrated public relations campaign was critical to the success of the reform (Guillaume and others 2011).