The New York Times is calling for a carbon tax and former Reagan Chief Economist Marty Feldstein is on board.
He told FBN’s Stuart Varney both a carbon tax and income tax rate-cut would be a “great trade” and “real plus” for the economy.
“A carbon tax would have some positive advantages in terms of the environment, congestion on the roads, price of oil … But if you can take that revenue and use it to reduce marginal tax rates on individuals, corporate tax rates to encourage more investment--it’s a win-win combination,” he said.
Feldstein said he also favors a shift from income taxes to consumption taxes and believes the economy would benefit from limiting subsidies.
"If we put some limits on some of the tax subsidies that are in our tax code and we use that money to reduce tax rates that also would be a net-plus for the economy,” he said.
Although he believes there’s a “zero” chance of the Obama Administration cutting taxes, he sees the 2016 elections as a “real scope” for tax reform.