Part 5/8:
The Case for Reinstating Old Taxes
Henry has also signaled a desire to reintroduce certain taxes that were previously dropped, notably a carbon tax. The question posed by critics is simple yet profound: Why did we ever abandon the best carbon policy in the world? This policy was abandoned for political reasons, despite its economic efficiency and environmental benefits.
Drawing lessons from Europe and the UK—where carbon taxes have been implemented for decades—the impression is that these regions have not necessarily thrived economically under such measures. Critics argue that imposing such taxes may not yield the productivity gains that are often promised, and might instead strain energy sectors and economic competitiveness.