Oct. 19, 2021: The carbon tax makes a comeback

An unusual confluence of factors have brought back a climate-change fighting policy that many Democrats saw as politically toxic: the carbon tax.

While the idea has long been the favored tool of economists (Treasury Secretary Janet Yellen is a strong supporter), some Republicans (like Sen. Mitt Romney) and the American Petroleum Institute, the Biden White House has always opposed pricing carbon. The president’s staff has feared both the general politics and the specific fact that a carbon tax could violate the president’s pledge not to raise taxes on Americans making under $400,000 a year.

Raghu Manavalan is the host of POLITICO's Playbook.
Jenny Ament is the senior producer for POLITICO Audio. 
Irene Noguchi is the executive producer of POLITICO Audio.