On May 3, 2024, Senate Republicans introduced a bill to repeal President Joe Biden’s proposed climate-related tax increases, arguing that they would drive up energy costs and hurt American businesses. The bill, titled the “Affordable Energy and Economic Protection Act,” seeks to block Biden’s plan to increase taxes on fossil fuel industries, including oil and gas companies, as part of his administration’s broader climate agenda. The GOP asserts that these tax hikes would disproportionately harm low- and middle-income families by raising energy prices.
Senator John Barrasso (R-WY), who spearheaded the legislation, was joined by fellow Republicans including Senator Ted Cruz (R-TX) and Senator Shelley Moore Capito (R-WV). Barrasso argued that Biden’s tax plan would lead to higher fuel prices, reduced job opportunities in the energy sector, and create more financial strain on households already dealing with inflation.
“Biden’s climate agenda is nothing more than a massive tax hike that will make energy more expensive and burden American families,” Barrasso said during the introduction of the bill. “The ‘Affordable Energy and Economic Protection Act’ is designed to protect consumers from these harmful policies and ensure we continue to promote affordable and reliable energy for all.”
The proposed tax increases are part of Biden’s larger climate initiative, which seeks to reduce U.S. greenhouse gas emissions by 50% by 2030. The tax hikes target carbon-intensive industries and aim to accelerate the transition to renewable energy sources. However, Republicans argue that such measures could slow economic growth by raising the cost of energy for American families and businesses, especially as the U.S. economy continues to recover from the pandemic.
The bill also includes provisions to strengthen energy independence, advocating for the expansion of domestic oil and gas production and opposing restrictions on new drilling projects. Republicans argue that maintaining a diverse energy mix—one that includes both fossil fuels and renewable sources—is key to ensuring a stable and affordable energy supply.
The legislation has received significant backing from industry groups such as the American Petroleum Institute (API), which has warned that Biden’s climate-related tax increases could harm U.S. energy producers and put the country at a disadvantage compared to other nations that do not have similar restrictions. API President Mike Sommers stated that the tax hikes would lead to fewer investments in domestic energy production, ultimately harming consumers.
While the bill faces strong opposition from Senate Democrats, who argue that addressing climate change requires a bold economic response, the GOP is framing the legislation as a crucial measure to protect energy consumers and foster a strong, competitive economy. The outcome of this legislation is expected to be a key issue in the 2024 elections, with energy policy remaining a critical focus.
