Conservatives who think a new carbon tax would have its revenues devoted one-to-one to reducing personal income taxes aren’t seriously thinking through the politics of the situation
Grist Confirms IER Warnings on Carbon Tax Swap Deal
The Institute for Energy Research (IER) recently released my study on the dangers of a carbon “tax swap” deal. This is the idea, championed even by many conservatives, that a new carbon tax might be economically efficient so long as it is coupled with reductions in other taxes. In my study, I pointed out numerous theoretical and practical flaws with such a naïve recommendation. It’s refreshing to see that a recent Grist blog post confirms my warnings.
