Delaney Files Carbon Tax Bill, Revenues Used to Lower Corporate Tax Rate, Provide Benefits to Coal Industry Workers, Payments to Low Income and Middle Class Americans
WASHINGTON – Today Congressman John K. Delaney (MD-6) introduced the Tax Pollution, Not Profits Act, legislation that establishes a tax on greenhouse gas emissions. Congressman Delaney’s legislation uses revenues generated by this carbon tax to 1) lower the corporate tax rate, 2) provide extensive benefits to displaced coal industry workers and 3) provide payments to low and middle income Americans.
“The power of markets is the one tool we must harness if we are going to respond to climate change effectively,” said Congressman Delaney. “The truth is, there are significant hidden costs we’re already paying, as greenhouse gas emissions place a burden on public health and the health of our environment. Greenhouse gas emissions are also a down-payment on incredibly expensive damages in the future wrought by climate change, which threatens our economy, our infrastructure and our national security. By accurately pricing carbon and other greenhouse gasses, we create market incentives around new innovation and new energy technologies, which is the single most important thing we need to tackle climate change. Importantly, we put these revenues to good use, using them to reduce the corporate tax rate overall, provide benefits to coal workers and make payments to low income and working Americans.”
By utilizing market forces to respond to climate change, Congressman Delaney’s legislation positions the United States to become a global leader in new energy technology and production. For his work to forge innovative bipartisan solutions Congressman Delaney was named one of the “World’s Greatest Leaders” by Fortune magazine last month.
The Tax Pollution, Not Profits Act
Establishes a Federal Tax on Green House Gas Emissions
- Places a tax on greenhouse gas (GHG) emissions at $30 per metric ton of carbon dioxide or carbon dioxide equivalent, increasing each subsequent year at 4% above inflation.
- New carbon tax uses market forces and private sector innovation to reduce greenhouse gas pollution. Businesses benefit from predictable, market-driven approach.
Lowers the Corporate Tax Rate to Boost Economic Growth
- The legislation reduces the corporate tax rate from 35% to 28%, helping companies mitigate higher energy costs and, importantly, makes U.S. companies more competitive.
- Increasing U.S. economic competitiveness in a global economy will lead to gains in job creation, economic growth and increased domestic investment.
Helps Impacted Coal Industry Workers
- Creates a new multi-billion dollar aid program administered by the Department of Labor (DOL) to assist workers in the coal industry that may be displaced as a result of the legislation.
- The assistance can include: worker retraining programs, financial assistance with relocation expenses, health, early retirement and other benefits.
- There is precedent for the DOL to administer this kind of program. Since 1973 the Department of Labor has administered benefits to coal miners and their survivors impacted by black lung disease.
Provides Middle Class and Working Families with Payments
- A portion of the revenues collected from the pollution tax will be redirected to low-income and middle-class working families.
- Households at or below 150% of the federal poverty line will receive direct monthly payments to fully offset increased energy costs.
- Households between 150-200% of the federal poverty line will receive a reduced monthly payment on a sliding scale. Households over 200% poverty level will be eligible for a refundable tax credit, with benefits also on a sliding scale.