WhatFinger

Taxes on Capital Are Very Harmful

Responding to R Street on the Carbon Tax: When Does It Make Sense to Advocate the Impossible?


In a recent series of posts (here and here), I amplified some of Oren Cass's strongest criticisms of the typical case for a US carbon tax. Seeing an opportunity for a zinger, Josiah Neeley at R Street put up a post entitled, "Prominent carbon tax skeptic admits it could increase economic growth." Although I appreciate being dubbed "prominent," as we'll see the R Street post is wrong in both title and in substance. Neeley is referring to my discussion of a capital tax cut offsetting the damage of a carbon tax, but that of course is far from saying a carbon tax could increase economic growth. Beyond that, Neeley's advice to me to advocate politically impossible outcomes is also dubious.
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