Corporate Tax Hike Vs. Carbon Tax: Economic Trade-Offs

President Biden has announced two ambitious, entwined economic policy agendas: raising the corporate tax rate and other taxes on large businesses to pay for a significant increase in spending on a broadly defined set of infrastructure objectives. While the case for at least some increase in infrastructure spending is sound, the case for unwinding the corporate tax reforms enacted in 2017 is not.

Alex Brill Testifies Before Senate Committee on Finance on Tax Treatment of Energy

On Tuesday, American Enterprise Institute resident fellow and MGA founder and CEO Alex Brill testified before the U.S. Senate Committee on Finance. The topic of the hearing was the tax treatment of energy. Brill spoke of the criticality of a “broad, efficient, technology-neutral tax policy geared toward encouraging less energy consumption and more renewable energy production” to working toward a reduction in U.S. reliance on fossil fuels—and ensuring a reduction in CO2 emissions.

MGA’s Alex Brill on Liberty & Justice for All

“I advocate and support a carbon tax, but not just blindly, not just any carbon tax. It is critically important that the carbon tax be revenue neutral. That at the time at which this policy is put in place its done in a matter in which the revenues expected to be generated from the carbon tax are used to reduce other taxes that are more distortionary. This is what we would call the principles of basic tax reform.”