H.R.3338 - Modernizing America with Rebuilding to Kickstart the Economy of the Twenty-first Century with a Historic Infrastructure-Centered Expansion Act; MARKET CHOICE Act (119th Congress)
Summary
H.R.3338, the MARKET CHOICE Act, aims to modernize America's infrastructure and stimulate economic growth by amending the Internal Revenue Code to eliminate certain fuel excise taxes and impose a tax on greenhouse gas emissions. The bill establishes the Rebuilding Infrastructure and Solutions for the Environment (RISE) Trust Fund, funded by greenhouse gas emission taxes, to support infrastructure projects and environmental initiatives.
It also includes provisions for border tax adjustments on greenhouse gas-intensive products to prevent carbon leakage and encourage international cooperation on emissions reduction. The Act establishes a National Climate Commission to set emissions reduction goals and assess the effectiveness of federal policies.
Furthermore, the bill addresses assistance for displaced workers in the energy sector and makes amendments to the Clean Air Act, including a moratorium on certain regulations based on greenhouse gas effects.
Expected Effects
The MARKET CHOICE Act is likely to shift the tax burden from fuel consumption to greenhouse gas emissions, incentivizing cleaner energy sources and technologies. The RISE Trust Fund would provide dedicated funding for infrastructure improvements and environmental projects, potentially leading to modernization and resilience.
The border tax adjustments could impact international trade and encourage other countries to adopt similar carbon pricing mechanisms. The moratorium on certain Clean Air Act regulations could temporarily limit the EPA's ability to regulate greenhouse gas emissions from specific sources.
Finally, the National Climate Commission would provide ongoing assessment and recommendations for achieving emissions reduction goals.
Potential Benefits
- Infrastructure Improvements: Dedicated funding for roads, bridges, airports, and other critical infrastructure.
- Environmental Protection: Investment in climate change mitigation and adaptation projects, including carbon capture and storage technologies.
- Economic Growth: Stimulating economic activity through infrastructure spending and incentivizing innovation in clean energy technologies.
- Job Creation: Creating jobs in construction, renewable energy, and other sectors related to infrastructure and environmental projects.
- Assistance to Displaced Workers: Providing retraining, relocation expenses, and other support for workers in the energy sector affected by the transition to cleaner energy sources.
Potential Disadvantages
- Increased Costs: The greenhouse gas emissions tax could increase costs for businesses and consumers, particularly in energy-intensive industries.
- Economic Disruption: The shift away from fossil fuels could lead to job losses in certain sectors and require significant economic adjustments.
- Complexity and Administrative Burden: The border tax adjustments and other provisions could be complex to implement and administer, creating additional burdens for businesses and government agencies.
- Potential for Carbon Leakage: The border tax adjustments may not fully prevent carbon leakage, and some industries may relocate to countries with less stringent environmental regulations.
- Moratorium on Regulations: The moratorium on certain Clean Air Act regulations could limit the EPA's ability to address greenhouse gas emissions from specific sources, potentially hindering progress on climate change mitigation.
Constitutional Alignment
The bill's focus on infrastructure and environmental protection aligns with the General Welfare Clause (Article I, Section 8) of the Constitution, which allows Congress to provide for the well-being of the nation. The establishment of a commission and the delegation of regulatory authority to agencies like the EPA are consistent with Congress's legislative powers.
The imposition of taxes and the creation of trust funds fall under Congress's power to tax and spend for the general welfare (Article I, Section 8). The bill also addresses interstate commerce through border tax adjustments, which is within Congress's purview to regulate commerce among the states (Article I, Section 8, Clause 3).
However, the moratorium on certain Clean Air Act regulations could raise questions about the Executive Branch's duty to enforce existing laws, potentially implicating the separation of powers doctrine.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).