Let’s Scrap Regulations in Favor of a Carbon Tax
Alex Brill | CNBC
Tax reform is hot this year, and rightly so. Mending an outdated tax system is an important political and policy objective. I am optimistic that Republican lawmakers will be successful, but no matter the scale or scope of this effort, it will not be the last big tax bill. Because tax reform is a perpetual effort, it is not too early to start considering post-tax-reform tax reform ideas.
One worthy candidate for the next tax reform effort is a cut in the most distortionary taxes in exchange for a tax on carbon emissions, combined with permanent carbon deregulation of the energy sector. Such a reform package – conservative in design – has the potential to boost U.S. economic growth in the long run.