Largest Tax Increase in History: “$6.7 Trillion in the form of Higher Gasoline and Electricity Bills”
June 5, 2008
Largest Tax Increase in History
“$6.7 Trillion in the form of Higher Gasoline and Electricity Bills”
· The Congressional Budget Office (CBO) says the Climate Tax bill would effectively raise taxes on Americans by over a trillion dollars just over the next 10 years.
· Sponsors of the bill and its substitute estimate it will generate over $6.7 trillion in revenues through 2050 from the sale and auction of carbon allowance to energy users.
· Unfortunately, that $6.7 trillion cost will be passed on to families and workers across the country in the form of higher gas prices, higher electricity and heating/cooling bills, more expensive consumer goods and higher workplace costs.
· In fact, new funding for government programs, minus any set asides for transition assistance or tax relief to states, industry, or consumers under the Act is a staggering $4.2 trillion.
· In my state of Oklahoma, according to various economic models, this bill will cost $3,298 to Oklahoma families in 2020 and cut over 51,000 jobs through the life of the bill.
· Carbon caps will have an especially harmful impact on low-income Americans and those with fixed incomes.
· A recent CBO report found: "Most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline.
· Those price increases would be regressive in that poorer households would bear a larger burden relative to their income than wealthier households."
· The poor already face energy costs as a much higher percentage of their income than wealthier Americans. While most Americans spend about 4% of their monthly budget on heating their homes or other energy needs, the poorest fifth of Americans spend 19%.
· A 2006 survey of Colorado homeless families with children found that high energy bills were cited as one of the two main reasons they became homeless.
· In March, Roy Innis, chairman of the Congress of Racial Equality, warned that mandated carbon controls would disproportionately impact minorities. "We are harming our poorest families; we are rolling back the civil rights we struggled so long and hard to achieve; and we are sending many minorities to the back of the energy and economic bus. This must not, and cannot continue," Innis said.
· The Wall Street Journal said on May 27 that the bill “would impose the most extensive government reorganization of the American economy since the 1930s.”
· The Cleveland Plain Dealer said the bill “will just bore new holes into an already battered economy. It also doesn't have a prayer of becoming law.”
· A June 2, Wall Street Journal further opined: “This is easily the largest income redistribution scheme since the income tax.”