The Trump administration is still waiting for the new tax on carbon to come — but it’s going to be a big one
The White House has announced that it will release a new tax plan this week that would replace the Obama administration’s carbon tax with a $10 per ton tax on every ton of carbon dioxide emitted.
The Trump transition team did not immediately respond to a request for comment on the tax.
But the announcement came just a day after the administration announced a $15 per ton carbon tax for coal and natural gas.
President-elect Donald Trump’s transition team announced that the administration would begin rolling out its tax plan on Thursday.
The new tax would add a $1,500 tax credit for people who purchase electricity from renewable sources like wind and solar energy.
The plan would also repeal Obama-era regulations and allow businesses to build coal-fired power plants.
Trump’s team also announced that Trump will sign the bill on Friday, though it’s not clear if the president will sign it immediately.
The announcement is notable because the White House and Congress have both faced criticism for not putting a price on carbon, and because the tax could be the first major piece of legislation the Trump administration has put forward.
It’s also notable because it comes as the transition team has struggled to find a path forward on climate policy.
As of last week, the Trump transition has yet to make any promises on the new carbon tax, though the White Senate Office of Management and Budget said in a March 2 statement that it is “looking at ways to advance a carbon tax.”
In addition to the new revenue from the tax, Trump said in March that he would support “the Keystone XL pipeline, and other large pipeline projects that are critical to American jobs.”
The transition team also released a video outlining a few of its tax policy proposals, which were mostly directed toward energy, climate change and infrastructure.
Trump said the tax plan would raise $3 trillion over a decade and would reduce greenhouse gas emissions by $400 billion.
It would also include a $100 million carbon credit for the electric car industry, which has been a major lobbying target for the Trump team.
It was not immediately clear how the new plan would affect existing energy production and exports, which are subject to the federal emissions rules, according to The Associated Press.
The Tax Policy Center, a think tank that studies tax policy, said the $10 a ton tax would likely add about $5 billion to the deficit.
The tax would be phased in over five years, with an estimated $3.4 trillion in additional revenue over the next decade.
The White Senate office said the proposal would “ensure that the economy does not become a revenue sink,” adding that the tax would “be the most efficient and progressive means to achieve our national climate goals.”
It also said that the proposal will “encourage companies to invest in alternative sources of energy that do not require carbon credits, and will help provide the American people with the certainty needed to make the right decisions about energy.”
It was also unclear whether the Trump tax would require states to spend any tax revenue on other programs, like Medicaid or the Earned Income Tax Credit, which Trump has repeatedly threatened to cut.