Higher corporate income taxes in Biden’s tax plan have an intrinsic inefficiency — unlike taxes on goods and services, they discourage not only consumption but also investment in plant and equipment and research and development. Austan Goolsbee, a senior adviser to former President Obama, once estimated the deadweight loss from corporate income taxes to be 10 percent of the tax revenue. Greg Mankiw, a senior adviser to former President George W. Bush, has noted that deadweight loss rises with the square of the tax rate, so that doubling the tax rate increases the deadweight loss fourfold. Taxes on goods with negative consequences instead offer an opportunity for efficiency gains because they reduce use of those goods and the negative consequences. These potential gains underlie the worldwide popularity of taxes on tobacco, alcohol and fossil fuels. Mankiw, along with other prominent Republican economists, have advocated for revenue-neutral carbon taxes to address global warming. Taxes on goods with bad consequences also may be less burdensome than prescriptive federal regulations.