Proponents of a proposed carbon tax claim it would be revenue neutral, but Ph.D. economist David Kreutzer of the Heritage Foundation disagrees: “Politicians and other carbon tax proponents are already proposing all sorts of plans for possible carbon tax revenue, such as wealth transfers to the developing world and financing UN climate funds. Politics would never allow it to be revenue neutral. And the economic consequences would be devastating. A carbon tax would raise gasoline prices by up to 50 cents per gallon and cost America more than one million jobs by just 2016. Nor would it prevent the EPA from issuing its own carbon regulations, which would further squeeze the economy. Simply put, no good can come of it.”
March 12, 2013 by David Rothbard,
David Rothbard is co-founder and President of CFACT.