West LA Times

Climate policy will differ significantly depending on whether Kamala Harris or Donald Trump wins the presidency, with the tax code playing a crucial role, according to Kimberly Clausing, a UCLA law professor. Clausing, who previously served as a top tax official at the U.S. Treasury Department during the Biden administration, emphasized that "climate advocates ignore tax policy at their peril."

Clausing highlighted that "perhaps the Biden administration’s biggest legislative achievement was the Inflation Reduction Act (IRA), which, despite its name, is to a large extent a climate bill." She noted that the IRA included numerous tax credits aimed at clean energy. However, she warned that "if a second Trump administration comes to town, they will likely seek to repeal the clean energy tax credits and roll back important regulations affecting the power sector and auto sector."

She also pointed out that some argue job creation in red states due to these clean energy investments makes them immune to repeal. However, she countered this by stating it ignores "the pressure on Republicans to undo what Democrats have done," drawing parallels with red-state governments' reluctance to embrace policies under the Affordable Care Act.

Clausing stressed that emissions trajectories would vary greatly between a Republican trifecta in Congress and White House compared to a Democratic one. She explained that there could be differences of hundreds to thousands of metric tons of CO2 by 2040 if both tax credits and regulatory steps are repealed.

"A lot of climate policy is done through the tax code," Clausing reiterated. She explained that Senate rules make it easier to pass legislation with budgetary impacts since only 50 senators are needed rather than 60. Consequently, climate policies often take the form of taxing or spending instead of mandates.

Media are encouraged to quote from Clausing’s comments or request interviews with her or other UCLA climate experts. Clausing specializes in carbon pricing policies, the Inflation Reduction Act, and broader intersections of climate change with tax and trade policy.

Clausing holds the Eric M. Zolt Professor of Tax Law and Policy position at UCLA School of Law and served as deputy assistant secretary for tax analysis in the Treasury Department. Media can reach out for this week’s UCLA Election 360 email featuring her comments on Harris's and Trump's proposed economic policies.

For additional context related to extreme heat and wildfires in Western North America, join a live Q&A session on Friday with UCLA climate scientist Daniel Swain at 2 p.m. PT/5 p.m. ET. Swain will discuss abnormal rain in the northwest and provide an updated wildfire outlook for fall.