What We Believe
A vibrant and strong economy is critical for the United States to fuel growth and opportunity for every American and to maintain its leadership position in the world.
Policymakers now have an extraordinary opportunity to take on the most pressing challenges of our time, increasing the well-being of American families, helping job creators build new opportunities for American workers, and unleashing innovation that will reshape our economy for the better.
One of our greatest opportunities is to put in place pro-growth solutions to promote clean energy – a major global growth industry – and to reduce carbon pollution. But for too long, policymakers have embraced a top-down, regulatory approach to these challenges – an approach that needlessly harms the economy.
Republican elected officials will lift some of this regulatory burden. But, even after these efforts, Americans will still be living in a regulatory state, one that is sure to grow over time.
Conservatives with a long-term vision should embrace a pro-growth alternative to this burdensome regulatory approach: a revenue-neutral carbon tax that pre-empts regulations. This policy, which enjoys the support of most conservative economists, would stimulate American growth and innovation. We support such a policy, but only if it meets the following conditions:
It should be revenue-neutral, with any new revenues used in a “tax swap,” to eliminate or reduce other taxes that harm economic growth and job creation. In other words, a carbon tax must not grow the government.
It should include a specific and ironclad mechanism to eliminate existing and planned regulations that needlessly weaken our economy and hurt job creation.
It should ensure American competitiveness in the global marketplace and incentivize other countries to move in a similar direction.
It should include rolling back special tax breaks for corporations and other inefficient subsidies that currently let Washington pick winners and losers in the marketplace.
We will participate in an open, honest and respectful dialogue with experts, policymakers, the public, and other interested parties as we work to address critical economic challenges to achieve a stronger, more secure future for America.Download PDF