A US economist has warned that implementing a carbon tax will "kill the economy."
A carbon tax is a fee imposed on businesses and individuals that works as "pollution tax." In theory the carbon tax would only affect big companies that burn carbon-based fuels, including coal, oil, gasoline, and natural gas.
Country's such as South Korea, China and Thailand have implemented this as a way of cutting down on their use of fossil fuels.
However, US Economist Dr Arthur B. Laffer explained that using this in America could have disastrous effects on the economy.
Dr Laffer said that the Carbon Tax could be fatal for the economy
GBNews
He told Jacob Rees-Mogg on GBNews America: "Al Gore and I did a paper long ago together which was just put on a carbon tax.
"The problem with the carbon tax, of course, is it will kill the economy.
"So what Al Gore and I agreed upon was we have a carbon tax put on and then have it offset 100% by an income tax rate reduction.
"Or as Al wanted, he wanted a payroll tax rate reduction dollar for dollar so that there will be no net effect on the economy.
"And all it does is reduce the carbon composition of the production of the economy, which would be much easier.
"And then let the private market decide how it responds to a tax on carbon and lower taxes on income or payrolls."
Dr Arthur B. Laffer spoke to Jacob Rees-Mogg about the economic consequence of a carbon tax
GBNews
The expert did reveal that the burning of fossil fuels is a problem in America and said: "I don't want to be that cynical about it, but I think they believe that there is a real problem with carbon in the atmosphere and that they believe that that's raising earth temperatures and that will have catastrophic of implications.
"But even if you did believe that, there's a much simpler solution than all of this nonsense they're doing."
Dr Arthur B. Laffer is the founder and chairman of Laffer Associates, an economic research and consulting firm.
Dr. Laffer’s economic acumen and influence in triggering a worldwide tax-cutting movement in the 1980s have earned him the distinction in many publications as “The Father of Supply-Side Economics.”
Dr Arthur B. Laffer said that he wrote a paper long ago on the Carbon tax
GBNews
Dr. Laffer has authored over twenty books, including the New York Times bestseller, An Inquiry into the Nature and Causes of the Wealth of States (Wiley 2014), and Taxes Have Consequences: An Income Tax History of the United States, released by Post Hill Press in September 2022.