A State-Level Carbon Tax with Border Adjustments
8 Pages Posted: 3 Apr 2017
Date Written: March 28, 2017
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: Suggested Citation