CBO says carbon tax may hurt low-income workers

September 14, 2021
The non-partisan Congressional Budget Office (CBO) says establishing a fee on carbon either through a tax or cap-and-trade system would hit lower-income households twice as hard as higher-income families, based on an analysis that looks at income rather than consumption. The CBO findings could spell trouble for legislative proposals that business groups publicly favor for climate mitigation policy, as a way to more easily adjust to international pressure to cut emissions, though it is possible that such carbon pricing plans...

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