Nation's First Carbon Tax Recently Proposed in Washington State

Washington Governor Jay Inslee has once again proposed sweeping environmental protections. Inslee recently proposed the nation’s first carbon tax. A tax would be placed on carbon emissions (on a per-ton basis). A carbon tax would encourage innovation towards clean energy. Inslee’s proposal will use the tax proceeds for public education. Estimates suggest the state could raise $2 billion per year.

Inslee has re-framed the climate issue as a jobs issue. In an interview with the Seattle Times, Inslee explained: “We’re finding that we can grow clean-energy jobs by the bushelful around the state of Washington. We want those jobs here. Not just in China, not just in British Columbia, not just in California. And so it’s an economic opportunity as much as it is a health and environmental challenge.” Evidence suggests that voters favor employment-based arguments.

The governor’s efforts follow many unsuccessful, statewide attempts to limit climate change. Multiple carbon-tax bills have been introduced in the legislature. Little action has taken place on them however. Most visibly, voters also turned down a state constitutional initiative – Initiative 732 – in November 2016. That ballot measure also included a carbon emissions tax. Proceeds would have paid for a sales tax reduction, as well as rebates for lower-income taxpayers. The initiation was nonetheless opposed by most lobbying groups. Social justice advocates argued Initiative 732 hit the working-poor too hard. Environmental groups, including the Sierra Club, argued that proceeds should pay for renewable energy investment. In the end, only 42% of voters voted in favor of Initiative 732. It was a stinging defeat for carbon-tax advocates.

Despite its setbacks, Washington State has still been at the forefront of climate action. This winter, the State joined the newly-formed Carbon Pricing in the Americas (CPA) platform. The CPA was negotiated at the One Planet Summit in Paris. Canada, Mexico, and several Central/South American nations joined the CPA as well. Washington State and California are the CPA’s only U.S. participants. All participants committed themselves to instituting a carbon tax to address global climate change.