A State-Level Carbon Tax with Border Adjustments

8 Pages Posted: 3 Apr 2017

See all articles by David Gamage

David Gamage

Indiana University Maurer School of Law

Darien Shanske

University of California, Davis - School of Law

Date Written: March 28, 2017

Abstract

This essay develops three new doctrinal arguments in support of the conclusion that a state-level carbon tax with border adjustments should be permissible under the dormant commerce clause. This essay builds on our prior work to argue against the view that a single state cannot (practically) impose a significant carbon tax due to the claim that border tax adjustments are Constitutionally impermissible. By demonstrating how a state government could implement a carbon tax with border tax adjustments in a Constitutionally permissible fashion, this essay shows that levying a carbon tax is a realistic and practical option for U.S. state governments. Non-abridged title: "Strengthening the Case for a State-Level Carbon Tax with Border Adjustments".

Keywords: carbon tax, border adjustments, state and local tax, state tax, carbon tax

JEL Classification: K34, K32

Suggested Citation

Gamage, David and Shanske, Darien, A State-Level Carbon Tax with Border Adjustments (March 28, 2017). State Tax Notes, Vol. 83, No. 11, 2017. Available at SSRN: https://ssrn.com/abstract=2942238

David Gamage (Contact Author)

Indiana University Maurer School of Law ( email )

211 S. Indiana Avenue
Bloomington, IN 47405
United States

HOME PAGE: http://www.law.indiana.edu/about/people/bio.php?name=gamage-david

Darien Shanske

University of California, Davis - School of Law ( email )

400 Mrak Hall Dr
Davis, CA CA 95616-5201

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