Lower Emissions and Lower Taxes?
Offset a carbon tax with other tax cuts to achieve bipartisan goals
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The best way to reduce emissions of greenhouse gases is to put a tax on carbon. Almost all economists would agree on this, yet in the U.S. it’s assumed the idea will always be unpopular. Smartly framed, however, a carbon tax has a fighting chance of success. And here’s how: Dedicate all the revenue, not just some, to cutting other taxes.
Granted, some Republicans oppose a carbon tax merely because it recognizes climate change as a problem requiring action. There’s nothing one can do to persuade this group. Many more Republicans oppose a carbon tax because it’s a tax. For this latter group, at least, the argument can be recast: The idea is not so much to impose a new tax as it is to reduce government intervention in the economy.