Why a State-Level Carbon Tax Can Include Border Adjustments
6 Pages Posted: 6 Mar 2017
Date Written: February 13, 2017
This essay argues that U.S. state governments can permissibly levy state-level carbon taxes with border tax adjustments. In doing so, we respond to the general consensus that such a move would violate the dormant commerce clause.
Keywords: Tax, State and Local Tax, SALT, Border Adjustment, Carbon Tax, Cap and Trade, AB 32
JEL Classification: K34
Suggested Citation: Suggested Citation