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ARTICLE ABSTRACT

In November 2018, three Republicans and three Democrats in the House of Representatives led by Rep. Ted Deutch, D-Fla., proposed the Energy Innovation and Carbon Dividend Act, the first bipartisan carbon pricing proposal in Congress in nearly a decade. The proposed legislation would establish a national carbon tax, which would achieve reductions in greenhouse gas emissions at a lower cost than approaches that focus on specific sectors, regions or technologies. Proceeds from the carbon tax would be returned to Americans in the form of monthly rebate checks. Three other prominent federal carbon tax proposals have been released or modified in 2018: (1) by congressional Democrats led by Sen. Sheldon Whitehouse of Rhode Island, (2) by congressional Republicans led by Rep. Carlos Curbelo of Florida and (3) by the Climate Leadership Council, authored by former Secretary of State James A. Baker III, with former Secretary of State George P. Shultz. This paper describes how the Deutch proposal resembles and differs from the other prominent carbon tax proposals of 2018.

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