The Biden administration has set ambitious goals to decrease US carbon emissions. Starting in 2022, the Inflation Reduction Act granted clean energy tax credits to businesses in hopes of encouraging a greener economy.

Kyle and Shuting Pomerleau see a carbon tax as a superior approach. To offset any regressive effects, they propose a revenue swap, using the income from the tax to directly finance an expanded child tax credit. Today on Political Economy, I talk to the Pomerleaus about their innovative policy proposal, and why a carbon tax might be a powerful, multifaceted solution.

Shuting Pomerleau is the deputy director of climate policy at the Niskanen Center. She has previously worked at the Cato Institute and the American Council on Renewable Energy.

Kyle Pomerleau is a senior fellow at AEI, where he studies federal tax policy. He was previously chief economist and vice president of economic analysis at the Tax Foundation.