Tax reform may be the last big initiative we will see out of Washington this year. Republican leaders have laid out an ambitious mission to make taxes “simpler, fairer, and lower” for American families, while also lowering tax burdens on small businesses and corporations so they can be more competitive. On the latter front, as the chief negotiators recently outlined in a joint statement, “The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas.”
Where can revenue scorers get the $1 trillion over 10 years the border tax was supposed to raise? Well, ahem, a carbon tax is also a consumption tax. To make it acceptable to free marketers, it would have to come with a full stop to all climate-related mandates and subsidies including fuel-mileage rules. It would also have to be clear that all carbon-tax proceeds are being used to cut payroll or income taxes.