HJR 138 presents a straightforward constitutional amendment: it would prohibit the Texas Legislature from imposing any tax on the carbon content of fuels or on greenhouse gas emissions stemming from the use, production, or consumption of goods and services. The resolution responds preemptively to policy trends in other jurisdictions, particularly in Europe, where carbon taxes have been implemented to curb fossil fuel usage. The measure is designed to protect Texas’ dominant oil and gas industry from potential future tax burdens that could discourage production and investment.
This proposal is strongly aligned with the principles of individual liberty and free enterprise. By constitutionally blocking a form of taxation that targets specific behaviors or industries, HJR 138 affirms the right of individuals and businesses to engage in lawful economic activity without the threat of punitive fiscal policy. From the perspective of limited government, the resolution represents a structural safeguard against future legislative overreach, reinforcing fiscal restraint through constitutional means.
Importantly, the resolution carries no significant fiscal impact beyond the cost of placing the amendment on the ballot. Texas currently imposes no carbon taxes, so the resolution would not reduce existing state or local revenue. Its primary effect is preventive protecting the state’s tax policy framework from expansion into environmental taxation.
Given the absence of new regulatory burdens, criminal penalties, or rulemaking authority, and its strong alignment with constitutional principles and economic freedom, HJR 138 earns a “Yes” vote recommendation. It is a clear expression of Texas’ commitment to limited taxation, energy independence, and constitutional fiscal discipline. Texas Policy Research recommends that lawmakers vote YES on HJR 138.
Individual Liberty: The resolution protects individual liberty by prohibiting the state from using tax policy to influence or penalize personal consumption or production decisions involving fossil fuels or greenhouse gas emissions. It preserves the freedom of individuals to engage in lawful activities—such as driving, farming, or manufacturing—without the state attaching punitive financial consequences based on environmental criteria. By removing the possibility of a carbon tax, it helps ensure personal energy choices are not subject to government manipulation.
Personal Responsibility: While carbon tax advocates argue such measures promote responsible environmental behavior, HJR 138 upholds the notion that responsible stewardship should come from voluntary action, innovation, or market solutions—not government coercion. The resolution reinforces a framework in which individuals and businesses are trusted to make environmentally conscious decisions on their own, consistent with the principle that government should not dictate private moral or economic choices.
Free Enterprise: HJR 138 strongly supports free enterprise by removing the threat of a carbon tax, which could have disrupted market dynamics and imposed disproportionate costs on industries integral to the Texas economy—particularly oil, gas, transportation, and manufacturing. Such taxes have historically led to higher production costs, reduced competitiveness, and offshoring of jobs. By constitutionally barring this kind of intervention, the bill protects entrepreneurial freedom and fosters a business climate conducive to growth and investment.
Private Property Rights: Though indirectly, the resolution strengthens private property rights by limiting the state’s ability to reduce the value or usability of private assets through carbon-based taxation. For example, if carbon taxes were imposed on energy consumption, it could reduce the economic viability of farmland, mineral leases, or industrial operations. By preventing such distortive taxation, the resolution preserves the right of property owners to use their resources as they see fit, within the bounds of law.
Limited Government: At its core, HJR 138 is a constitutional limitation on legislative power. It prevents future legislatures from expanding the state’s tax authority into carbon-based revenue schemes—regardless of political shifts. This reflects a structural commitment to limited government and aligns with constitutionalist principles that favor restrained fiscal policy and clearly defined bounds on government authority. The resolution reinforces a foundational Texas value: that government should not expand its reach without explicit, democratically approved constitutional authority.
