Democrats Propose Tax on Carbon-Intensive Imports in Budget
· Plan would slap tariff on some carbon-intensive goods
· ‘Polluter import fee’ would help pay for spending bill
By Jennifer A Dlouhy and Ari Natter, Bloomberg
July 14, 2021
Senate Democrats are moving to impose tariffs on carbon-intensive imports as a way to help pay for their tax-and-spending legislation, according to a person familiar with the plan.
The measure is included in a $3.5 trillion budget blueprint developed by Senate Democrats as a way to advance major Biden administration policy initiatives, including addressing climate change, expanding Medicare and reforming immigration.
The plan also includes expanding tax credits for renewable energy and electric vehicles as well as the creation of a clean energy standard that could mandate utilities generate carbon-free power.
Senator Jeff Merkley of Oregon said in an interview Wednesday that “there is a lot of support for this idea” of a border adjustment tax on high-carbon products.
The size and scale of the potential “polluter import fee,” as it was described in a summary document, were not immediately clear. But the plan dovetails with efforts by other countries -- including the European Union -- to use trade policy as a tool for curbing greenhouse gas emissions...
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