Lindsey Graham Backs Carbon Fee

The drive to enact a carbon royalty (or fee) received an important boost last week. South Carolina Senator Lindsey Graham became the first Republican in the Senate to publicly endorse a "price on carbon” to fight climate change.

"I'm a Republican. I believe that the greenhouse effect is real, that CO2 emissions generated by man is creating our greenhouse gas effect that traps heat, and the planet is warming," said Graham. "A price on carbon—that's the way to go in my view."

He said that he is working with Senator Sheldon Whitehouse (D, RI) on legislation. Whitehouse and Senator Brian Schatz (D-HI) introduced a carbon tax bill in July, appearing at the American Enterprise Institute (AEI) to announce it. Graham, who said he would take the idea to the White House for consideration, called for climate change legislation during the 2016 election but did not mention a price on carbon explicitly.

From our meetings with scores of senators and their aides over the past three years, we know that a number of them privately support this free-market idea or are at least open to it. We will try to persuade them to join Graham in speaking out publicly.

Reasons to Be Upbeat

Harvey, congressional gridlock, the U.S. withdrawal from the Paris accord, climate change deniers in high places…. These are just some of the things that can discourage someone who believes we need to take action on climate change.

But there are also reasons to be upbeat:

  • While Congress has a disproportionate number of members who are content to sit on their hands as the climate changes at an alarming pace, the House Climate Solutions Caucus has grown to include 52 members--half of them Republicans.

  • After a bipartisan vote in July left climate language in the annual defense authorization bill, Climate Solutions Caucus Co-Chairman Carlos Curbelo voiced optimism that lawmakers may actually begin to engage earnestly on the subject. "We have a lot of Republicans, even from the deep South, who everyday come to me and say, 'Well, let's talk about this climate change thing and sea level rise,'" Curbelo told a Florida radio station. "There is growing interest, and my hope is that we can build that coalition, that bipartisan coalition, as quickly as possible just so that we can advance common-sense policy solutions."

The Best Way to Pay for Tax Reform

Most in the GOP see tax reform as the next act. It has been a priority even longer than repeal of Obamacare. House leaders definitely have their eyes on this prize: House Speaker Ryan recently told the Wisconsin State Journal that he plans to introduce a tax overhaul bill in September with the goal of moving it through the House by the end of the year. According to Politico, Senate Finance Committee Chairman Orrin Hatch said, “We’re not going back to health care. We’re in tax now. As far as I’m concerned, they shot their wad on health care and that’s the way it is. I’m sick of it.” For its part, the White House wants a bill on the president’s desk by December.


Here’s a central question: Will the bill run up the national debt even higher? That would be irresponsible. Publicly held national debt already exceeds $14 trillion. Without any tax cuts or new spending, it is headed for $25 trillion in 10 years. That would produce the highest debt-to-GDP ratio in modern times--crippling our ability to fund a strong national defense, pay for basic services, and care for an aging population.

House Vote is Sign of Hope for Bipartisanship

Take a moment to digest - and applaud - a sign of bipartisan support for dealing with climate change. Last week (July 13) 46 House Republicans voted to reject a measure that would have deleted from the annual defense authorization bill a requirement that the Department of Defense study its vulnerability to climate change. With that Republican support, the amendment was defeated, 234-185