Business Leaders Submit Statement To Ways And Means Committee On “Made-In-America Carbon-Funded Tax Cuts”

For Immediate Release: June 6, 2017

Two former CEOs and the former Chief Risk Officer of Goldman Sachs say that carbon pricing could help achieve comprehensive tax reform that boosts U.S. competitiveness and job growth, according to a statement submitted to the record of the House Ways and Means Committee last night.

Following President Trump’s announcement that he plans to withdraw the United States from the Paris Agreement on Climate Change, this statement is another sign that American business is committed to finding a pro-growth solution to managing climate risk.

Together, the businessmen have broad experience in major sectors of the U.S. economy.

  • Gregg Sherrill is the former CEO of Tenneco Inc., the largest American supplier of auto parts, and the former Chairman of the Board of the National Association of Manufacturers.
  • Robert “Bob” Litterman is the former Chief Risk Officer of Goldman, Sachs & Co., and the founding partner of Kepos Capital.
  • William Eacho is the former CEO of Atlantic Food Services Inc. Mr. Eacho is also a former Ambassador to Austria and the co-founder of the bipartisan carbon-pricing advocacy organization the Partnership for Responsible Growth.

The statement was submitted in response to the Committee’s May 23rd hearing on Increasing U.S Competitiveness and Preventing American Jobs from Moving Overseas.

That hearing considered the “border adjustment tax,” a controversial component of the “Better Way” tax reform blueprint prepared by House leadership that Chairman Brady says is a “critical part” of paying for tax reform.

A carbon price starting at $25 per metric ton of CO2 and rising annually in real terms could raise more than $1 trillion dollars over ten years – enough to achieve tax reform while protecting low and moderate income families from rising prices.

And unlike Chairman Brady’s “border adjustment tax”, which would face major WTO challenges that could cost the U.S. $385 billion per year, the U.S. could impose a border carbon adjustment that complies with WTO rules and defends American manufacturing. That would “keep the American middle class first”, the authors note.

The statement can be viewed here.