To control the risk of climatic disruption, many economists advocate putting a price on carbon. Research shows that an especially efficient way to do that would be to use a tax on greenhouse gas emissions to fund pro-growth tax reforms. A well-designed, economy-wide carbon tax could also help the United States achieve its emissions targets under the Paris Climate Agreement, lower conventional air pollutants, replace less efficient and effective Clean Air Act regulations, and eliminate the need for disparate state-level measures. It could also help pay for infrastructure investments, an expansion of the Earned Income Tax Credit, and other priorities.
Could the current debate on tax reform create an opening for such a deal? What might a bipartisan approach to including a carbon tax look like? The Urban-Brookings Tax Policy Center, the Cross Brookings Initiative on Energy and Climate, congressional leaders, and top experts held a discussion on the prospects for tax reform and the potential to include a carbon tax in a broader bipartisan bill.