Cap and Trade: A Regressive Tax that will Hit the Poorest the Hardest
Posted by: velvethammer in UncategorizedAccording to a recent report (September 2009) by the Institute for Energy Research (IER) that is, their analysis concludes the Waxman-Markey bill H.R. 2454 OKA “American Clean Energy and Security Act of 2009″ is a regressive tax that will hit the poorest the hardest.
Page 15 - Click through to read full report.
ABSTRACT
Recent Congressional Budget Office (CBO) estimates of H.R. 2454, the “American Clean Energy and Security Act of 2009,” suggest the bill’s costs would be progressive across income groups. However, the analysis relies on assumptions about the incidence of free emission” allowances” that are not supported by microeconomic theory. We provide alternative estimates of the costs faced by U.S. households from the legislation. We find the bill—both on a gross and net basis—to be regressive, imposing the largest burdens on low- and middle-income households. On a gross basis, the bill would cost $106 billion per year or $892 per household, ranging from $451 to $1,531 depending on income. On a net basis, households in the four lowest-earning quintiles would pay between $31 and $512 per year, while households in the highest-earning quintile would actually profit by $604 per year—effectively redistributing roughly $14 billion per year to the highest- earning households in the U.S. We also examine the bill’s distribution of free allowances to various industries, finding that the legislation is likely to generate large windfall profits for various politically favored industries at the expense of U.S. consumers. As debate over climate policy moves to the U.S. Senate, lawmakers should be wary of these flaws in the structure of the Waxman-Markeycap-and-trade bill.
Why do Obama, the Democrat majority, various RHINO’s & Al Gore et al hate the poor so much? What a cold hearted bunch of scoundrels.
Wait a minute, didn’t Obama promise no raised taxes for the middle class?
Barack Obama’s tax plan delivers broad-based tax relief to middle class families and cuts taxes for small businesses and companies that create jobs in America, while restoring fairness to our tax code and returning to fiscal responsibility. Coupled with Obama’s commitment to invest in key areas like health, clean energy, innovation and education, his tax plan will help restore bottom-up economic growth that helps create good jobs in America and empowers all families achieve the American dream.
Middle class families will see their taxes cut – and no family making less than $250,000 will see their taxes increase.
In all fairness the above goes back to his campaign promise. Let’s see what some of the top dogs in the Obama administration have to say now that time has passed.
Obama Treasury Secretary Timothy Geithner and White House economist Larry Summers do not even offer nondenial denials
White House adviser David “Axelrod waffles on Obama no-middle-class-tax-hike vow”
White House Press Secretary Robert Gibbs: Obama Won’t Raise Middle-Class Taxes
I say let’s put more of our trust in them. They are just getting started. Have not had enough time to fully put the screws to U.S. Oh it will hurt so good.
Hope and Change baby! Happy now?
You aren’t? Well then don’t just sit there listening to me ramble, melt those phone lines!
Update: Cap and Trade: A $3.6 Trillion Gas Tax
[...]…there’s a $3.6 trillion gas tax on the table that already passed the House and is making its way through the Senate, and cap and trade has Americans all over the country concerned. The $3.6 trillion gas tax figure, which includes gasoline and diesel gas, comes from a new report from Senators Kay Bailey Hutchison (R-TX) and Kit Bond (R-MO) on the effects of climate change legislation. And the energy tax has rippling economic effects, as Senators Hutchison and Bond explain in their Washington Times op-ed:
Americans will be double-hit by the gas tax when it raises the costs of goods and services such as groceries and utilities they must continue to purchase. Energy costs are among businesses’ top operational expenses already. While companies face a variety of energy expenses, ranging from heating and cooling their work space to powering equipment and lighting, operating their vehicles is the most costly. Every company, from the small-town local florist to a package delivery service with nationwide operations, will be hard hit. In order for these businesses to withstand the heavier tax burden and to remain profitable, they will be forced to pass these energy cost increases along to consumers through higher prices.”
Update 2:
Waxman-Markey: Homeowners, Small Businesses, and Farmers Hit the Hardest
The Waxman-Markey global warming bill narrowly passed the U.S. House of Representatives and awaits consideration in the U.S. Senate. A Heritage Foundation analysis of the bill predicts the bill’s energy price-boosting measures will result in sky-high costs. Should it become law, Waxman-Markey will reverberate throughout the economy, costing the nation an average of $393 billion annually and over a million jobs from 2012 to 2035. (And Obama claims it will add much needed jobs
While a bill of this magnitude would leave few untouched, its impact is would not be evenly distributed. In fact, an estimated 2,300 lobbyists are in Washington working this issue, trying to make sure their clients–especially electric utilities and industries that use a lot of energy–get off as lightly as possible. The rest of Americans–especially homeowners, small business owners, and farmers–will be on the hook for the remainder of the multi-trillion-dollar price tag. Although there has been a flurry of last-minute changes to the bill, these alterations do little to reduce Waxman-Markey’s overall costs or its disparate impacts.
…..
$9.4 Trillion Poorer
The Heritage Foundation calculates that, by 2035, America would be $9.4 trillion poorer with Waxman-Markey than without it. This is a tremendous burden and one that is not spread evenly. Should this measure become law, the future for the American homeowner, small business owner, and farmer will be particularly bleak.
Related:
Phil Kerpen (Americans For Prosperity) Discusses House Cap-N-Trade Bill HR2454 With Glenn Beck
Required Reading: “What was in the Waxman-Markey’Manager’s Amendment’?”
Doc Drop: The Copenhagen Climate Change Treaty Draft Sept 15 2009
Full Video: Lord Monckton Speaks –Obama Poised to Cede US Sovereignty in Copenhagen
Do not dare question The Goracle, for The Goracle has spoken
Manhattan Declaration on Climate Change – “Global warming” is not a global crisis
Released: Global Warming Study Censored by [Obama's] EPA
Global Fraud Al Gore Supports “Cap and Trade” No Debate About It
Climate Change: The Forces of Darkness vs. Age of Enlightenment and Reason
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