Observations on the Pomerleaus’ Proposed Carbon Tax/Child Tax Credit Expansion

This paper presents a critique of a recent analysis by my friends and colleagues Kyle Pomerleau and Shuting Pomerleau in the pages of Tax Notes Federal examining policy alternatives for an expansion of the child tax credit, financed with revenues from a notional tax on greenhouse gas (GHG) emissions, commonly termed a “carbon tax.” Their analysis is focused primarily on those policy alternatives, while this critique concentrates primarily on the carbon tax as a climate policy and fiscal tool.