The push for a carbon tax has regained popularity as the fiscal storm in 2025 and climate change debates intensify. Advocates claim it’s a solution to pay for spending excesses while reducing greenhouse gas (GHG) emissions. But a carbon tax is a misguided, costly policy that must be rejected.
A carbon tax functions more like an income tax than a consumption tax, capturing all forms of work, including capital goods production and building construction. These sectors are heavy on carbon emissions, meaning the tax disproportionately burdens them, stifling investment and innovation — much like a progressive income tax, but with broader economic repercussions.
For example, in the US, the construction sector alone accounts for about 40 percent of carbon emissions. A carbon tax would heavily penalize this industry, reducing its capacity to grow, generate new housing, and create jobs. Moreover, implementing a carbon tax involves massive administrative costs. The federal tax code is already complex and costly; a carbon tax would exacerbate these issues.
Determining net carbon emissions is a nuanced process subject to ever-changing and arbitrary federal definitions, increasing compliance costs for businesses and consumers.
Hellbound and Down 