A conservative think tank says lawmakers should consider ending taxes on corporations and instead institute a fee on carbon dioxide emissions.
A report from the R Street Institute, released Friday, said a fee on carbon could fill the revenue gap left by ending the federal tax on corporations.
Citing the Congressional Budget Office, the study said ending the tax on corporations would cost $300 billion a year, based on 2016 figures. More than $167.2 billion of that would be made up through other forms of tax reform and higher income from workers and investors, and the group said a $25 per ton fee on carbon pollution could be used to fill in the remaining gap in revenue.
The group, which has long advocated for a carbon tax, suggested instituting the fee while also stripping away regulations on the energy sector and stopping renewable energy subsidies.
“Axing federal policies designed to restrict carbon dioxide emissions from the energy sector as a whole would eliminate billions of dollars in compliance costs for industry and shrink the federal government’s rulemaking and enforcement capabilities," the study’s authors wrote.
"By setting the benchmark that lower taxes are wise policy and that specific policy outcomes can be achieved while simultaneously shrinking the government’s footprint, this proposal could serve as a model for policies that reduce the size of government broadly."
Prospects for a carbon tax are dim. Republicans on Capitol Hill are on the record opposing such a measure, and President-elect Donald TrumpDonald TrumpKinzinger says Trump 'winning' because so many Republicans 'have remained silent' Our remote warfare counterterrorism strategy is more risk than reward Far-right rally draws small crowd, large police presence at Capitol MORE has said he’s against a tax on carbon, as well.