US carbon tariff on Australia unlikely: Congressman

Financial Review ^ | 9/5/2021 | Matthew Cranston

[Right Wing Vegan]

The proposed carbon fee would serve as one of several proposed sources of funding for the Biden administration’s plan to spend $US4.7 trillion ($6.3 trillion) on infrastructure and social welfare via two separate bills.

However, there is already fierce debate within the Democratic party about how big the spending should be and how to pay for it, with key Senators such as Joe Manchin vehemently opposed to the scale of the welfare bill.

Congressman Joe Courtney, who last week controversially went against Mr Biden by backing a $24 billion increase to the US defence budget, said it was unlikely a carbon fee would be imposed to help pay for the new spending.

“Carbon import duties – I think that’s biting off more than Congress can chew,” Mr Courtney said.

“I think that one would be a really heavy lift for Congress to take up right now. If nothing else just because for the average member that’s really new territory,” he said.

Mr Courtney, who has close ties with Richard Neal, the head of Congress’ chief tax-writing committee, said the Biden administration’s plan to repeal certain Trump administration tax cuts was the much more likely route.