The country needs policies that help it become more competitive, not less so. Lowering the tax burden, not raising it with a carbon tax, is the best way to achieve that goal.
Raising taxes won’t stop climate change, but will slow economic growth
DALLAS — Taxing carbon emissions has long been supported by environmentalists and the political left, but recently it has found support among some establishment Republicans. And perhaps even President Donald Trump.
Taxing carbon raises the price of using energy. Supporters hope the country would, therefore, emit less carbon, reducing our impact on climate change. However, they are ignoring several problems.
There is no viable alternative to carbon-based fuels. In economics the “elasticity of demand” is the idea that if the price of one product such as coffee goes up significantly, consumers will look for substitutes, perhaps tea.
A product is considered “elastic” when there are lots of substitutes and “inelastic” when there aren’t.
