Policy Documents

Carbon Tax Would Raise Unemployment, Not Revenue

Dr. David W. Kreutzer, Nicolas Loris –
January 9, 2013

The economic, environmental, and political realities surrounding a carbon tax are clear indications that this is bad policy. Recently, two bipartisan resolutions publicly denounced the possibility of a carbon tax, highlighting the crushing economic and minimal environmental effects of the tax. One resolution, sponsored concurrently by Senator David Vitter (R-LA) and Representative Mike Pompeo (R-KS), and a second by Representative David McKinley (R-WV) and co-sponsored by five other Republicans and three Democrats expressed their disapproval of the idea. Whether the American economy is booming or heading off a fiscal cliff, the right time for a carbon tax is never.