May 20, 2009
The Cap and Trade Tax
Like I've mentioned before, the EPA and FDA have claimed authority to regulate CO2 under the Obama administration. So you're getting cap and trade up the A** one way or the other. But don't worry congress is coming to save you.
Via Reason.com: Finally, Christina Romer, the head of Obama's Council of Economic Advisors, calculated last year that a 1 percent increase in taxes reduces economic output by 2 to 3 percent over the following three years. The Congressional Budget Office estimates that the cap-and-trade scheme will collect about $80 billion per year in revenues, a figure that represents about 3 percent federal tax increase.So that's a 6 to 9 percent reduction in economic growth for three years following the implementation of the bill. Given our current negative growth rate, er uh you get the idea, longer recession, less revenue, fewer jobs. This will help "the little guy". But mark my words, I doubt this bill will make it out of the congress without the power producers getting "their fair share" of any price increase. They'll get increased profits from your pocket out of this bill , i guarantee it.
The Dems policy in my home state is so wonderful it gave power companies a defacto unregulated monopoly and we get to pay 60 to 80% more to them each month. Thanks to the Democrats for "helping out the little guys" namely COMED and Ameren.
Hat Tip: Instapundit.
Update: More much more here at Michelle's blog.
Analysis of the economic impact of Waxman-Markey projects that by 2035 the bill would:* Reduce aggregate gross domestic product (GDP) by $9.6 trillion;
* Destroy 1,105,000 jobs on average, with peak years seeing unemployment rise by over 2,479,000 jobs;
* Raise electricity rates 90 percent after adjusting for inflation;
* Raise inflation-adjusted gasoline prices by 74 percent;
* Raise residential natural gas prices by 55 percent;
* Raise an average family’s annual energy bill by $1,500; and
* Increase inflation-adjusted federal debt by 26 percent, or $29,150 additional federal debt per person, again after adjusting for inflation.
By Howie at May 20, 2009 09:03 AM | | l digg this
