Urban Institute. February 11, 2013.
The revenues from a carbon tax could help finance lower corporate tax rates, extending business tax preferences, or other corporate tax reforms, according to this report. Such a tax swap would reduce the environmental risks of carbon emissions and improve the efficiency of America’s corporate tax system. But it would also pose a significant distributional challenge. A carbon tax would fall disproportionately on low-income families, while corporate tax cuts would disproportionately benefit those with high incomes. Policymakers may want to use some revenue to offset those impacts. They may also want to use some carbon revenues for deficit reduction. [Note: contains copyrighted material].
http://www.urban.org/UploadedPDF/412744-Carbon-Taxes-and-Corporate-Tax-Reform.pdf [PDF format, 18 pages].
Congressional Research Service. January 23, 2013.
Recent actions by the Organization for Economic Cooperation and Development (OECD) and the G-20 industrialized nations have targeted tax haven countries, focusing primarily on evasion issues. The HIRE Act (P.L. 111-147) included a number of anti-evasion provisions, and P.L. 111- 226 included foreign tax credit provisions. Some of these proposals, and some not adopted, are in the American Jobs and Closing Loopholes Act (H.R. 4213); the Stop Tax Haven Abuse Act (S. 506, H.R. 1265); draft proposals by the Senate Finance Committee; two other related bills, S. 386 and S. 569; the Bipartisan Tax Fairness and Simplification Act (S. 3018); and proposals by President Obama.
http://www.fas.org/sgp/crs/misc/R40623.pdf [PDF format, 56 pages].
Economic Policy Institute. November 15, 2012.
As policymakers begin negotiations on addressing the nation’s fiscal challenges, it is crucial that they clearly understand the economic context of the choices they face, according to the report. It provides analyses and recommendations for specific actions regarding both the impending so-called fiscal cliff and future projected budget deficits. [Note: contains copyrighted material].
http://www.epi.org/files/2012/pm196-fiscal-cliff-principles-for-upcoming-budget-debates.pdf [PDF format, 3 pages].
Microeconomic Studies Division, Congressional Budget Office. November 13, 2012
Imposing a tax on carbon dioxide emissions would reduce the damage from climate change but would also impose a larger burden, relative to income, on low-income households than on high-income households. This paper evaluates two broad groupings of options for reducing the regressive effects of a carbon tax; one group of options would affect large segments of the economy, for example by reducing payroll taxes, and the other group of options would be targeted at low-income households, for example by providing an additional payment to households currently receiving electronic transfer benefits.
https://www.cbo.gov/sites/default/files/cbofiles/attachments/11-13LowIncomeOptions.pdf [PDF format, 19 pages].