Climate change bill calls for 50-cent fuel tax

WASHINGTON (Reuters) – U.S. drivers would pay a 50-cent tax on each gallon of gasoline they pump to encourage less fuel use and cut greenhouse gas emissions, under draft legislation to fight global warming released on Thursday.

“In order or reduce greenhouse gas emissions and make the planet safe and healthy for future generations it will take a significant investment from all of us,” said Rep. John Dingell, the powerful chairman of the House Energy and Commerce Committee.


“A fee on carbon emissions requires a tithe from all citizens and industries, but no one entity will be unfairly leveled with a devastating burden,” Dingell said about his climate change proposal.

The fuel tax, which would also be tacked onto a gallon of jet fuel, would be phased in over 5 years and then adjusted for inflation.

Diesel fuel, which produces 20 percent fewer emissions than gasoline, would be exempt from the tax, as would biofuels that do not contain petroleum.

Reuters