Why Rolling Back EPA Rules Hurts Everyone — And How a Carbon Tax Can Help

Over the past few months, the federal government has begun rolling back key environmental protections. These changes affect how much pollution industries are allowed to release into our air and water—and the consequences are serious. But there’s a smarter, simpler way to deal with pollution that actually helps both the economy and the planet: a carbon tax that gives money back to the people.

Here’s what’s happening and why it matters.

What Are EPA Rollbacks?

The Environmental Protection Agency (EPA) sets rules to limit harmful pollution. These rules cover things like tailpipe emissions from cars, smokestacks at power plants, and dangerous chemicals in our water.

In early 2025, the current administration weakened or removed many of these protections. They also limited the EPA’s power to enforce the Clean Air Act and Clean Water Act. That means companies can now release more pollution without facing the same consequences.

The Real-World Impact

More pollution in the air and water: These rollbacks will lead to higher levels of smog, toxic chemicals, and fine particles that can get deep into your lungs. This doesn’t just harm the environment—it directly affects human health.

Serious health risks: Breathing dirtier air can lead to more asthma attacks, heart disease, and early deaths—especially for kids, seniors, and people living in low-income areas. One EPA analysis predicted over 1,000 extra premature deaths per year just from easing one rule.

More climate damage: Lifting limits on carbon pollution will increase U.S. greenhouse gas emissions by tens of millions of tons. That adds fuel to the fire—literally—as heatwaves, wildfires, and floods become more extreme.

Rising costs for everyone: In 2023 alone, climate-related disasters cost U.S. taxpayers $95 billion. Weakening pollution rules means we’ll likely see even more damage—and more public spending to clean up the mess.

Isn’t There a Better Way?

Yes. It’s called a carbon tax, and when done right, it’s fair, simple, and pro-business.

A carbon tax makes companies pay for the pollution they create by burning fossil fuels. The more they pollute, the more they pay. That might sound tough—but it actually gives businesses more freedom than complicated regulations. Instead of being told exactly what to do, they can choose how to cut emissions in the most cost-effective way.

And here’s the key: the money collected from the tax goes back to the people.

Under the Prosperity Loop approach, every dollar raised is returned equally to citizens as a yearly dividend. That means families get a check or direct deposit—helping them afford rising costs while keeping the economy strong.

Why This Works

1. It’s good for business: A predictable, slowly rising carbon price gives companies clarity. It encourages investment in clean technologies and rewards innovation.

2. It simplifies government: A strong carbon price can replace many outdated rules. That reduces red tape, lowers compliance costs, and lets the EPA focus on real problems instead of managing every detail.

3. It helps families: Studies from Canada and British Columbia show that most low- and middle-income households actually come out ahead with this approach—getting more back in dividends than they pay in higher fuel costs.

4. It protects our health: Cutting carbon emissions also reduces other harmful pollutants. That means cleaner air, fewer hospital visits, and more days kids can play outside.

Final Thoughts

We all want a strong economy and a healthy planet to pass on to future generations. Rolling back environmental protections may seem like a shortcut to growth, but in reality, it risks our health, safety, and long-term prosperity.

A well-designed carbon tax—especially one that puts money back in people’s pockets—is a smarter, leaner, and fairer solution. It’s a policy that works for businesses, communities, and the climate.

It’s time we stopped paying the price for pollution—and started getting paid to protect our future.

🌀 Learn more about the Prosperity Loop and how we can create a regenerative economy at prosperityloop.org.