Does a carbon tax support prosperity?

Congress and state legislatures should not shackle prosperity with a carbon tax because it is based on flawed assumptions and results in costly economic and environmental effects.

The key points are:

• A carbon tax is a government-set price on carbon dioxide emissions.
• An assumption for a carbon tax is the price paid for a final good does not reflect the supposed social cost from carbon dioxide emissions released producing the good.
• Congress and state legislatures should not shackle prosperity with a carbon tax because it is based on flawed assumptions and would result in large economic costs.