The Cap and Tax Fiction
Democrats off-loading economics to pass climate change bill.
... The hit to GDP is the real threat in this bill.The whole point of cap and trade is to hike the price of electricity and gas so that Americans will [be forced to] use less.These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars.Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill's restrictions kick in, that number rises to $6,800 for a family of four by 2035.Note also that the CBO analysis is an average for the country as a whole. It doesn't take into account the fact that certain regions and populations will be more severely hit than others -- manufacturing states more than service states; coal producing states more than states that rely on hydro or natural gas.
Low-income Americans, who devote more of their disposable income to energy, have more to lose than high-income families.
In other words, the less money you make, the greater the proportion of it you end up spending on residential energy costs (electricity, natural gas, fuel oil and propane). In 2007 for example, families with a pre-tax income of $10,000 or less were projected to spend 26 percent of their after-tax income on residential energy. Compare to 10 percent for families making $10-$30K, 6 percent for families making $30-$50K, and 3 percent for households above $50K.
Back to the Wall Street Journal:
Even as Democrats have promised that this cap-and-trade legislation won't pinch wallets, behind the scenes they've acknowledged the energy price tsunami that is coming.
During the brief few days in which the bill was debated in the House Energy Committee, Republicans offered three amendments to suspend the program:
IF gas hits $5 a gallon;
IF electricity prices rise 10% over 2009;
IF unemployment rates hit 15%.
Democrats defeated all of them.
.... Americans should know that those Members who vote for this climate bill are voting for what is likely to be
the biggest tax in American history.
According to the Heritage Foundation:
"Analysis by the Environmental Protection Agency shows that a 60 percent reduction in carbon-dioxide emissions by 2050 will reduce global temperature by 0.1 to 0.2 degree Centigrade by 2095."
Call your representative or the US Capitol Switchboard:
202 - 224 - 3121
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