April 4, 2017

WE ARE ALL NEOCONOMIST NOW:

The White House Is Reportedly Considering a Carbon Tax (Eric Levitz, 4/04/17, New York)

Initially, the House GOP's silver bullet was a border-adjustment tax (BAT) -- effectively, a measure that would decrease the tax liability of American exporters while increasing that of importers. This would both provide Trump a (relatively) non-disruptive means of making America more protectionist and raise about $1 trillion in revenue, since America imports a lot more stuff than it exports.

But major retailers don't like the BAT. And neither do many consumer groups, who view the tax as regressive. And a bevy of Republican senators has already vowed to kill the provision. So, now, the more moderate wing of the White House is, apparently, considering two other new taxes that will (almost certainly) never, ever pass. As the Washington Post reports:

President Trump's administration is exploring the creation of two controversial new taxes -- a value-added tax and a carbon tax -- as part of a broad overhaul of the tax code, according to an administration official and one other person briefed on the process. 

The value-added tax, which is popular in many other countries, would serve as a kind of national sales tax, one that consumers would pay when they make purchases and that businesses would pay for supplies, services and raw materials. A carbon tax would target the emissions of carbon dioxide and other greenhouses gases in the burning of gasoline, coal and other fossil fuels.

Posted by at April 4, 2017 5:58 PM

  

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