Tax Foundation Examines Carbon Tax Proposal

With some federal lawmakers expressing support for a carbon tax, the Tax Foundation has produced a study to examine the possible impacts of such a policy. The Foundation notes that the economic impact of a carbon tax would vary significantly based on how the generated tax revenues were used. Overall, the think tank estimates that a $50 carbon tax implemented in 2020 — growing at 5% each year — would raise $1.87 trillion in additional federal revenue, while reducing GDP by 0.4% and full-time equivalent employment by 447,000 jobs. 11/6/2019