Joe Biden’s business allies discuss ways to pay for infrastructure plan, including a carbon tax

President Joe Biden’s allies in the business community have been meeting to craft a set of proposals, including a potential carbon tax, to help pay for an expected $2 trillion infrastructure plan.

One of those efforts, which started just after Biden was declared the winner of the election in late November, is being led by longtime Biden ally and New York business leader Dennis Mehiel, along with former Dow Chemical CEO Andrew Liveris, according to a person with direct knowledge of the matter.

Mehiel and Liveris have been reaching out to business leaders across the country to discuss ways they believe the Biden administration and Congress could move ahead with funding mechanisms for such a large scale proposal, this person noted.

The plan is expected to come together in a few months, as Biden focuses on the Covid-19 pandemic and economic relief.

Discussions with various teams are expected to continue in the coming weeks. Some of the ideas are on course to be brought to Biden administration officials, along with congressional leaders. Sen. Chris Coons, D-Del., a Biden confidant, has also been on some of the calls, this person noted.

The people on the calls have discussed several ideas to pay for the plan, including a carbon tax, the person said.

A carbon tax is a “fee imposed on the burning of carbon-based fuels (coal, oil, gas), ” according to the Carbon Tax Center. “Policymakers could use the resulting revenue to offset those impacts, lower individual and corporate taxes, reduce the budget deficit, invest in clean energy and climate adaptation, or for other uses,” according to the Tax Policy Center.

The idea of a carbon tax previously came up in the Obama and Trump administrations.

Reuters reported in 2017 that Republican officials went to Trump with the idea of a carbon tax and the White House later pushed back on that concept. Via – CNBC

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