The decision to package the proposals in a budget reconciliation bill would allow Democrats in the sharply divided Congress to pass the measure without any Republican votes. A handful of Republican lawmakers have explored a carbon border tariff as a way to counter China and protect U.S. industries. “They’re proposing a border tax because they know punishing regulations and taxes will drive U.S. businesses overseas,” Mr. Barrasso said in a statement. A border tax is typically designed to even out the burden for a nation that has imposed a tax or price on carbon dioxide emissions. The hope is that it will encourage other countries to also price carbon and drive down emissions.

Source: New York Times July 19, 2021 15:40 UTC