Capital Commerce

Climate Taxes vs. Corporate Taxes

By James Pethokoukis

Posted: May 7, 2008

Here's the deal: Barack Obama wants to do a cap-and-auction system on carbon emission allowances, which would bring in $100 billion a year or more to Uncle Sam. Cutting the corporate income tax rate from 35 percent to 25 percent would "cost" $100 a billion a year. John McCain's cap-and-trade proposal—where the allowances are mostly given away—might be scored by the Congressional Budget Office as revenue neutral. If McCain wants a cap-and-auction system, could he not offset his corporate income tax cut with those cap-and-auction revenues?

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Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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