Policymakers in Washington are considering charging a foreign pollution fee or pollution tariff on imports determined by the pollution caused during their production abroad. The Council created a model to estimate the potential federal revenues from a pollution fee (“the revenue estimator”), finding that this type of policy could generate between $120-240 billion over ten years. This analysis is particularly relevant as tax reform takes center stage in Washington in 2025 and policymakers explore offsets to tax cuts.
