An energy tax is a tax that increases the price of energy (Fisher et al., 1996, p. 416). Arguments in favour of energy taxes have included the pursuit of macroeconomic objectives, e.g., fiscal deficit reduction in the 1990s, as well as environmental benefits, i.e., reduced pollution (Nellor, 1994, p. 1). A weakness of energy taxes is that they impose a burden (or cost) in the form of reduced economic output and employment (p. 19).

In 1993, then President Bill Clinton proposed a BTU tax. A BTU tax is a type of energy tax (Baron, 1997, p. 14). The tax would have taxed all fuel sources based on their heat content except for wind, solar, and geothermal. It was never adopted. The BTU tax passed the House, but was rejected by the Senate in light of the lobbying effort mobilized against its adoption. The rejected proposal was watered down, as the Clinton administration tried to salvage their efforts by offering to exempt manufacturers and base the tax on the cost rather than the heat content of energy. Many of the House Democrats who voted for the tax and who lost their seats in the 1994 midterm election, blamed their loss on their vote for the BTU tax. Getting "BTU'd" became Beltway slang at the time for those who lost reelection by voting for the controversial proposal.

Lindsey Olin Graham (born July 9, 1955) is the senior United States Senator from South Carolina and a member of the Republican Party. Previously he served as the United States Representative for South Carolina's 3rd congressional district.

Graham was born in Central, South Carolina, where his parents, Millie and Florence James Graham, ran a liquor store, the Sanitary Cafe. After graduating from D. W. Daniel High School, Graham became the first member of his family to attend college and joined the Reserve Officers' Training Corps. When he was 21 his mother died, and his father died 15 months later. Because his sister was left orphaned, the service allowed Graham to attend University of South Carolina in Columbia so he could be near home and care for his sister, whom he adopted. During his studies, he became a member of the fraternity Pi Kappa Phi.

Graham graduated from the University of South Carolina with a B.A. in Psychology in 1977 and from the University of South Carolina School of Law with a J.D. in 1981. Upon graduating, Graham was commissioned as an officer and judge advocate in the United States Air Force, placed on active duty and sent to Europe as a military prosecutor. He eventually entered private practice as a lawyer.