# The MARKET CHOICE Act: What It Actually Does

This bill creates a new tax on greenhouse gas emissions and uses the money to fund infrastructure projects. Here's what that means in practical terms.

The core idea is straightforward: starting in 2025, the government would charge a tax on fossil fuels based on how much carbon dioxide and other greenhouse gases they would release when burned. Coal, oil, and natural gas would all be taxed at the point where they leave the mine, refinery, or processing plant. The tax starts at $35 per metric ton of carbon dioxide equivalent in 2025 and increases every year by 5 percentage points plus inflation. If emissions stay above certain targets, the tax goes up an additional $4 per ton. This means the cost of fossil fuels would gradually increase, which would likely raise prices for gasoline, heating oil, natural gas, and electricity for everyday Americans. Businesses that rely heavily on fossil fuels would face higher operating costs, which could get passed along to consumers.

The bill eliminates the current federal taxes on gasoline and aviation fuel and creates a new trust fund called RISE (Rebuilding Infrastructure and Solutions for the Environment) to collect the greenhouse gas tax revenue. That money would go toward maintaining and building roads, bridges, airports, and other infrastructure, as well as helping communities deal with flooding and climate-related damage. The bill also includes provisions to help workers who lose jobs in coal and oil industries transition to new work, and it establishes a National Climate Commission to oversee how the money gets spent. Some manufacturers could get refunds if they can prove they're using fossil fuels in ways that eliminate or reduce emissions, and companies that capture and permanently store carbon dioxide from the air would also get tax refunds.