Delaney Introduces Legislation to Reduce Carbon Pollution, Reduce Taxes and Boost Economic Growth

May 1, 2015
Press Release
Tax Pollution, Not Profits Act establishes tax on greenhouse gas emissions, uses revenues to reduce the corporate tax rate to 28%, help coal workers and offset costs to working families

WASHINGTON –Congressman John K. Delaney (MD-6) has filed legislation to reduce carbon pollution and combat climate change in a pro-growth, economically responsible manner that helps working families. Delaney’s legislation offers a new approach, combining efforts to reduce greenhouse gas emissions with a reduction in the corporate tax rate and a new program to help impacted coal workers.

The Tax Pollution, Not Profits Act establishes a tax on greenhouse gas emissions; with receipts from the tax directed towards 1) reducing the corporate tax rate to increase employment and reduce consumer costs 2) providing monthly payments to low-income and middle-class households and 3) funding job training, early retirement and health care benefits to coal workers. Delaney’s legislation positions the United States to become a global leader in new energy technology and production and in environmental policy by utilizing a market-based solution.

“Climate change is a big problem that calls for a big solution. Climate change is a threat to American jobs, national security and national health. It’s time to get to work combating climate change and reducing greenhouse gas emissions before it is too late,” said Congressman Delaney. “The Tax Pollution, Not Profits Act combines strong environmental action with a market-based, pro-growth approach that will grow our economy, improve our business climate and make sure that working Americans can thrive. Importantly, we also ensure that coal workers – whose hard work is legendary and who have played a huge role in building this country – receive a helping hand. By reducing corporate taxes and taxing carbon, we can deliver a powerful double-bottom line which appeals to both sides of the aisle. In my view, climate change is the environmental issue of this century and we need to bring forward innovative policies that can garner wide support, policies like the Tax Pollution, Not Profits Act.”


The Tax Pollution, Not Profits Act

Establishes a federal tax on carbon pollution

  • Places a tax on Green House Gas (GHG) emissions at $30 per metric ton of carbon dioxide or carbon dioxide equivalent in 2015, 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 and returns revenues to the economy

  • 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 care, 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.

Protects middle class and working families with an Energy Refund

  • To ensure that low and middle-income households are not negatively impacted by the costs of transitioning to new energy sources, a portion of the revenues collected from the pollution tax will be redirected to low-income and middle-class working families via an Energy Refund.
  • 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.