Contact: Louisa Tavlas
Email: ltavlas@niskanencenter.org
WASHINGTON, D.C., May 14, 2025 – The Niskanen Center strongly supports the bipartisan reintroduction of the MARKET CHOICE Act, led by Representatives Brian Fitzpatrick (R-PA) and Salud Carbajal (D-CA). This legislation proposes a border-adjusted carbon tax—a transparent, efficient, and market-based strategy to reduce greenhouse gas emissions while maintaining a competitive edge for American manufacturers.
“As the global economy moves toward carbon accountability, the U.S. must lead with policies that are economically sound and internationally credible,” said Dr. Liza Reed, Niskanen’s Director of Climate Policy. “The MARKET CHOICE Act is a pragmatic, bipartisan approach that aligns climate action with fiscal responsibility and American competitiveness.”
Key provisions of the updated MARKET CHOICE Act include:
- Establishes a carbon tax starting at $40 per metric ton of CO₂, increasing annually at 5% plus inflation, with a carbon border adjustment to ensure American competitiveness
- Eliminates the federal gasoline tax and aviation fuel tax, overall simplifies fuel taxes, and avoids double taxation
- Suspends certain Clean Air Act regulations on covered stationary sources, providing regulatory certainty for industry in exchange for a market-based price signal
As global trading partners, including the European Union, implement their carbon border policies, the MARKET CHOICE Act ensures the U.S. remains competitive by using free-market tools to reduce emissions without undermining economic strength.
“The Niskanen Center applauds Congressmen Fitzpatrick and Carbajal for their continued leadership and urges Congress to take this opportunity to pass a market-based climate solution that strengthens both our economy and our environment,” Dr. Reed said.
The Niskanen Center is a 501(c)(3) advocacy organization established in 2014 to change public policy through direct engagement in the policymaking process.