By votes largely along party lines, the House on June 10, 2016, passed two "sense of Congress" resolutions, one specifically opposing the Obama administration's FY 2017 budget proposal to impose a new $10 per barrel tax on oil and another determining more broadly that a carbon tax is not in the best interests of the United States. Both resolutions were considered under a "closed" rule which did not allow for amendments.

Carbon tax

By a vote of 237-163, the House approved H. Con. Res. 89 to express the sense of Congress that "a carbon tax would be detrimental to the U.S. economy." Six Democrats joined 231 Republicans in voting in favor of the resolution. The resolution was sponsored by House Majority Whip Rep. Steve Scalise (R-LA) and co-sponsored by 82 members.

Although conceptually carbon taxes have garnered attention in media and non-governmental circles, often linked to tax reform as a potential revenue source, the Obama administration has not endorsed or submitted any comprehensive proposal to Congress. Moreover, the carbon tax-related bills that have been introduced by House members (e.g., H.R. 309, Rep. Jared Huffman (D-CA), and H.R.3104, Rep. John Larson (D-CT)) have languished in the Ways and Means Committee without hearings.

However, supporters of the resolution wanted to be on record in general opposition to any carbon taxes, arguing that such taxes would reduce America's global competitiveness, lead to less economic growth, and raise energy prices among other negative impacts enumerated in the text.

Oil tax

By a vote of 253-144, the House also approved H. Con. Res. 112 to express the sense of Congress that "a new tax should not be placed on oil," specifically rejecting the President's budget proposal to impose a new fee of $10 per barrel of oil. Twenty-three Democrats joined 230 Republicans in voting in favor of the resolution. The resolution was sponsored by Ways and Means Tax Policy Subcommittee Chairman Rep. Charles Boustany (R-LA) and 11 cosponsors.

In its FY 2017 budget request, the Obama administration proposed that Congress adopt a $10.25 fee on a per barrel equivalent of oil. The fee would be phased in over five years beginning October 1, 2016 and adjusted for inflation. Revenue to be derived from the oil fee — estimated by Treasury at $273 billion over 10 years — would be primarily allocated under the President's "21st Century Clean Transportation System" budget proposal to support the Highway Trust Fund (HTF) and to make additional investments in transportation and infrastructure improvements.

Although Congress reauthorized surface transportation programs for five years in the Fixing America's Surface Transportation (FAST) Act of 2015, it was unable to come to agreement on a longer-term source of revenue to offset chronic HTF short-falls. Fuels taxes (18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel) make up the bulk of the HTF revenue and have not been raised by Congress since 1993.

Supporters of the resolution cited estimates that the Administration's proposed oil tax could raise the price of gasoline by 25 cents per gallon and argued that it would have a negative impact on the competitiveness of the US energy sector and entire US economy.

It is important to note that both resolutions — while indicative of strong opposition to any carbon or oil-related tax increases in the remainder of this session in 2016 — are non-binding policy statements and, in any event, do not constrain future Congresses. Similar anti-carbon tax resolutions have been introduced in the Senate (e.g., S. Res. 472 by Senator Roy Blunt (R-MO) and 25 cosponsors) but there is no current schedule for floor consideration.

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