US News and World Report on line posted an article by James Pethokoukis which analyzed a report from the George C. Marshall Institute released yesterday. In this report, the George C. Marshall institute tried to quantify the costs of the plan to reduce carbon emissions. Their research determined, that the costs of the plan will be significant. The report states, "The authors find that the constraints posed by the Lieberman-Warner cap-and-trade approach is equivalent to a constraint (in percentage terms) consumption decrease of about 1% each year, continuing to 2050. Put another way, the cap-and-trade approach is the equivalent of a permanent tax increase for the average American household, which was estimated to be $1,100 in 2008, would rise to $1,437 by 2015, to $1,979 in 2030 and $2,979 in 2050." Didn't Obama promise that anyone making less than $250,000 per year would not have a tax increase?
George C. Marshall researchers Buckley and Mityakov show estimates of job losses attributed to cap-and-trade to range in the hundreds of thousands. They also found that the price for energy paid by the American consumer will rise. The studies reviewed showed electricity prices jumping 5-15% by 2015, natural gas prices up 12-50% by 2015 and gasoline prices up 9-145% by 2015. They illustrated these jumps in price using gasoline. According the analysis of the cap-and-trade plan as it stands would increase gasoline taxes by $.16 cents per gallon at the low end of estimates to a high end estimate of $2.58 per gallon. This is an outrage! Right now with the current economic climate, how can anyone propose to increase the costs of utilities? The only thing that is keeping our economy bearable currently is the lower gas prices than we paid 6 months ago. Increasing the costs of utilities and gasoline, I fear will be the proverbial last straw that breaks the camel's back.
Costs of actual energy consumption will not be the only back breaking element of this proposed legislation. US News and World report continues, "By proposing to reduce CO2 output by 80% from 1990 levels (that's 87% from 2006 levels) several other changes will have to be enacted. Even if all cars and light trucks become electric, and all electricity generation is from "clean sources" or based on hydrocarbon with CO2 capture we won't be close to achieving the CO2 reduction goals. The nation's rail system will have to be electrified, commercial aviation might have to be restricted, motor boats, snowmobiles, jet skis and other such devices will have to be banned. Also, home heating systems that use natural gas or heating oil will have to be converted to electric heat. The capital costs required to do this and the costs to individuals will be gigantic. These costs could easily dwarf the costs of the cap-and-trade tax."
Is this really the best time to promote environmental policy that will end jobs, and increase costs for basic life essentials like energy? It is becoming more and more clear that the Obama Administration and the Democratic Congress have no real connection to actual Americans and life in middle America. Can you afford to retro-fit your cars and home heating systems while paying more for your utilities and gas? We have to start NOW to try to get some common sense working in Washington. If we sit idly by and watch all of these proposals get passed into law, it will be too late to save ourselves. Please contact your representatives and tell them that you cannot afford the Cap-and-Trade plan. The economies of western states like Utah, will be dramatically altered by this plan. Let your voice be heard!
Comments
I am appalled. There is no way our economy can survive a tax hike along with a gas tax increase. When gas prices raise, prices increase on all goods. This administration is causing the country to tailspin into a recession and depression. Get your Obama Blankets now!
I have always had the utmost respect for the office of the President of the United States, no matter who was the elected official. I must sadly admit that I can not respect the current president in office because of the decisions made thus far. I see this being like the Carter administration on steriods. I am truly scared for the future of this once great nation. If our own President claims we're in a crisis, what stops the country from believing the same? We need to band together and become the great nation we know we can be. We need to stand up and oppose this increase not only for our sake but for our progeny as well.
This is insane. I can almost see the end results. Tree huggers will literally be hugging trees that we will have to cut down for warmth after the economy completely collaspes and utilities are too expensive for many Americans. Why can't the President see the benefit of drilling in the shale of the Rocky Mountains, thereby creating Thousands of JOBS, stimulating the economy and decreasing our dependency on foreign oil. Makes a little more sense than sending us into a slow and painful death that even the tree huggers would hate the ending too.
unitethegop, I totally agree!Logic seems to have been suspended in Washington. Rather than reducing costs and increasing jobs we are marching forward with plans to do just the opposite. We are living in bizzaro world.
Another shoe is ready to drop, and soon all the dominoes will start falling. Middle Americans and the poor only matter to the extent that we've become "useful idiots" in perpetuating the goals of this administration: a means to the end of absolute power to do whatever they want.
Sorry to sound so cynical, but the current political climate is too surreal.
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