Tax Reform and the Environment

The federal tax code has a significant impact on the environment. Fiscal policy is used to encourage as well as discourage various business activities and consumer decisions. Many of these activities affect environmental quality by influencing how much we consume, how we use natural resources, and how much pollution is released into our air and water.

President Bush’s recent call for tax reform and the presence of persistent federal budget deficits provide an opportunity for policymakers to consider changes to the tax code that could lead not only to greater simplicity and fiscal responsibility, but also to improved human and environmental health.

The Urban-Brookings Tax Policy Center, the Brookings Environment and Energy Project, and the World Resources Institute assembled this forum to discuss reforms to the tax code that would be both fiscally prudent and environmentally sound. Panelists will present their views and take questions from the audience following the discussion.