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Americans For Prosperity Americans for Prosperity (AFP) and Americans for Prosperity Foundation (AFP Foundation) are committed to educating citizens about economic policy and mobilizing those citizens as advocates in the public policy process. AFP is an organization of grassroots leaders who engage citizens in the name of limited government and free markets on the local, state and federal levels. The grassroots members of AFP advocate for public policies that champion the principles of entrepreneurship and fiscal and regulatory restraint.

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Five Myths About the*Latest*Carbon Tax*Proposal*

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Unread 08.22.18, 11:11 AM
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Five Myths About the*Latest*Carbon Tax*Proposal*

08.21.18 09:14 AM

The Market Choice Act is a piece of legislation currently under consideration by Congress. It contains a provision that would implement a carbon tax as a so-called “solution”*to*cutting pollution, boosting green energy, raising revenue and reducing negative externalities. But how effective would a carbon tax really be? Let’s address some myths about the carbon tax and*find out why its costs would outweigh the benefits. Myth #1 –*The carbon tax is a “market-driven,” sometimes called “price-driven,” policy. *Fact –*Many proponents of the carbon tax refer to the policy as being “market-driven,” or “price-driven,” in selling its features as being market-friendly. But a carbon tax is not market-driven, principally because a tax is not a market feature – it is, rather, a feature of government.*When government taxes something, it distorts the market and drives up prices for consumers. A tax on carbon would be anything but market-driven. Rather, it would be the government incentivizing a desired behavior by artificially inflating the cost of energy—while collecting a large stream of new revenue at the same time. Myth #2 –*A carbon tax is a useful and effective tool for protecting the environment. Fact –*Even if we adopt a carbon tax, it will produce an*extremely […]

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