With Republican support for a carbon tax growing, could Congress act this year?
A carbon tax may be the first tax in US history to tax everything (excluding financial products). Because everything we consume uses carbon producing products like oil and natural gas (either directly or indirectly), a tax on carbon is a flat way to tax consumption.
Emma Dahl Comments
While a carbon tax is a move in the right direction, one issue I see with it is that it taxes activity that is beneficial to the economy. I do believe a carbon tax is a good way to regulate pollution and consumption, but I don’t like the statement that it taxes “everything” because there is a lot of unproductive activity that would not be taxed, like in the financial sector.