US Senate Democrats are currently deliberating the inclusion of a carbon pricing proposal in the $3.5 trillion reconciliation bill, despite facing opposition from the White House and other parties. The objective is to utilise the generated revenues as a partial offset for the substantial spending package.
This development serves as the latest indication that a carbon tax or fee may be introduced alongside other climate policies in the United States.
Furthermore, a comprehensive proposal for a carbon tax, commencing at $15 per tonne, has been included in a separate document by the Finance Committee. The carbon tax is being explored as a potential means to finance the overall package.
Although President Biden is generally supportive of the concept, he excluded carbon pricing from the infrastructure bill based on his commitment not to increase taxes for individuals earning less than $400,000 annually.
