Thursday, December 8, 2022
HomeRight ColumnSenators Introduce Carbon Tax

Senators Introduce Carbon Tax


Last week, Senator Sheldon Whitehouse (D-RI) and Senator Brian Schatz (D-HI) introduced the American Opportunity Carbon Fee Act. According to the Senators, this bill aims to address concerns regarding climate change, while simultaneously improving economic performance.  Specifically, this bill will impose a tax on carbon dioxide emissions.


This tax would be levied at $45/metric ton in 2016 and increase by 2% each year afterward. The tax is targeted at large emitters of greenhouse gases, such as methane, and companies that mine, extract, or import fossil fuels. Over the course of a decade, the Joint Committee on Taxation estimates the total revenue collected would surpass $2 trillion.


The senators plan to use the tax revenue in four ways. First, cut the marginal corporate income tax rate by 6%, from 35% to 29%. Second, provide workers with $500 refundable tax credit against their Social Security payroll tax. Third, increase Social Security, veterans, and disabled Americans benefits by $500, which would be adjusted for inflation going forward.  Lastly, the revenue would fund block grants to states to fund programs to help workers of impacted industries transition to new jobs.

- Advertisment -

Related Articles

Trump Deputy Interior Pick Gets A Lashing On Climate Change From Sen. Al Franken

By Joseph Erbentraut, Alexander C. Kaufman About an hour and a half into Deputy Interior Secretary nominee David Bernhardt’s Thursday confirmation hearing before the Senate...

Coal To Remain India’s Main Energy Source For At Least 30 Years, Govt Confirms

Coal will remain India’s main energy source for the next three decades although its share will gradually fall as the country pushes renewable power...