Resolution in Opposition to a Carbon Tax

Resolution in Opposition to a Carbon Tax


This resolution highlights the important role that energy independence plays in U.S. national security, and that access to electricity is both an imperative for Americans’ well-being and for economic growth.  A carbon tax would have an immediate consequence of increased prices for gasoline and electricity with a costly impact on low-income families and businesses alike.  Such a tax would also be inconsistent with ALEC’s Principles of Taxation, because it would use the tax code as a means of manipulating consumer choices.  For these reasons, the resolution concludes that ALEC should oppose a carbon tax at both the state and federal level.

WHEREAS, affordable and abundant electricity is a strategic resource that is essential to modern life, America’s economic competitiveness.

WHEREAS, the application of a carbon tax to gasoline and other transportation fuels will have a dramatic, immediate impact on transportation costs; and

WHEREAS, a carbon tax, by design, will result in substantial, immediate increases in the price of electricity, making electricity less affordable for millions of Americans; and

WHEREAS, a carbon tax in the United States will have no impact on China, India, and other major sources of carbon emissions throughout the world, except to increase their competitiveness relative to the United States; and

WHEREAS, a carbon tax will put United States exporters and manufacturers at a competitive disadvantage by increasing domestic manufacturing production costs; and

WHEREAS, the sole purpose of the tax code should be to fund necessary government functions rather than to manipulate consumer decisions.

NOW THEREFORE BE IT RESOLVED THAT the American Legislative Exchange Council opposes all Federal and state efforts to establish a carbon tax on fuels for electricity and transportation.

Adopted by the Energy, Environment & Agriculture Task Force and the Tax and Fiscal Policy Task Force at the Annual Meeting, August 9, 2013. 

Approved by the ALEC Board of Directors, September, 30, 2013.

Keyword Tags: 2013 Annual Meeting, Carbon Emissions, Carbon Tax, Competitiveness, Electricity, Energy Environment and Agriculture Task Force, Federalism, Tax and Fiscal Policy Task Force, Taxation