Kerry-Lieberman: A Multi-Trillion Dollar Gas Tax
A Report by the U.S. Senate Committee on Commerce, Science & Transportation
The American Power Act proposed by Senators Kerry of Massachusetts and Lieberman of Connecticut is the latest attempt to cap American carbon emissions through new federal legislation. However, Kerry-Lieberman is unique from previous efforts by also proposing a new gas tax on the transportation sector. American families and workers will pay this new climate-related tax on the gasoline, diesel and jet fuel they use to drive and ride in their cars, trucks, tractors and planes. This report documents the cost of this proposed Kerry-Lieberman gas tax.
Past attempts at federal climate legislation have struggled with how to cut carbon emissions from the transportation sector. A cap-and-trade approach used on industrial facilities is not ideal for transportation emissions, essentially becoming a complicated indirect tax on fuels. Kerry- Lieberman takes the direct approach of assessing a fee on transportation fuels linked to their carbon content.
Kerry-Lieberman’s climate-related gas tax will drive up the prices of gasoline, diesel and jet fuel. The Kerry-Lieberman gas tax hits families at every income level, farmers in every field, truckers on every road and workers in every position. Determining the size and cost of the Kerry-Lieberman gas tax is essential to knowing how heavily this proposal will hurt Americans.
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