Carbon Border Adjustment Tax Bill Proposed in Congress
A bill that would establish both a carbon tax and a carbon border adjustment tax has been introduced in both the House and Senate. Rep. Marie Newman, D-Ill., said that the bill she sponsored "serves as one comprehensive plan to achieving critical reductions in greenhouse gas emissions while providing workers in declining energy sectors with a fair transition into new good-paying jobs. By investing in clean energy and embracing economy-wide carbon pricing, the plan will renew America’s leadership in technology and innovation while also building a sustainable future for all communities. "
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The text of the bill was published June 6; the bill was introduced in late April. The bill provides for a refund of carbon taxes when carbon-intensive products are exported, or when natural gas or petroleum are exported; it also provides for a carbon border adjustment tax if the exporting country doesn't have the same sort of tax; if it does, but the tax is lower, the carbon border adjustment would be reduced by the amount paid in the home country. It also allows for a waiver of the carbon border adjustment tax if the exporting country has regulations "that have substantially the same effect in reducing emissions of greenhouse gases as [carbon] fees." Both sides of the tax would begin in 2023 if the bill becomes law.