The Kerry-Lieberman Cap-and-Tax Bill: Another National Energy Tax
MAY 12, 2010
On May 12, 2010, Sens. Kerry (D-MA) and Lieberman (I-CT) introduced the Senate Democrats' cap-and-tax legislation. According to a summary provided by the sponsors, the bill broadly follows the outline of the Waxman-Markey bill which barely passed the House in 2009. Like the House bill, the Kerry-Lieberman plan amounts to a national energy tax that will raise energy costs and kill jobs while unemployment stands at almost 10 percent. National Energy Tax: The bill imposes a national cap-and-tax regime that ultimately every consumer in the U.S. would pay for. Independent researchers, the nonpartisan Congressional Budget Office (CBO), and President Obama have all agreed that this cost will be passed to consumers. Under any cap-and-tax system, facilities that emit greenhouse gases such as power plants and manufacturers would purchase credits for their emissions from the Environmental Protection Agency. The cost of these credits for businesses would be passed on to consumers in the form of higher electric bills and more expensive products. New Gas Tax: The Kerry-Lieberman bill would force producers and importers of refined petroleum products (gasoline) to purchase fixed-price emissions allowances from the government. Of course, the cost of these credits would be passed directly through to the consumers-commuters, truckers, farmers and vacationers-in the form of higher fuel prices at the pump. The national average for a gallon of gasoline is already almost $3 and trending higher as the summer travel season approaches. Kills Jobs: The bill would result in an enormous loss of jobs that would ensue when U.S. industries are unable to absorb the cost of the national energy tax and the bill's other provisions, likely sending jobs overseas. There is little debate that a national energy tax would outsource millions of jobs in affected industries to countries such as China and India. In May 2010, CBO confirmed that a cap-and-tax system would raise the overall unemployment rate and cause real (inflation-adjusted) wages to be lower. Industries most affected by the national energy tax would include manufacturing, transportation, mining, and oil and gas production. Forcing Individuals onto Obamacare: According to CBO, as individuals lose their jobs and employer-provided health care as a result of the national energy tax, they will be effectively forced into government-run health care. According to CBO, "Some people would lose health insurance coverage associated with their previous employer, though the recently enacted health care legislation will provide new opportunities for individuals to purchase health insurance. Moreover, people who lose their job tend to have more health problems later in life, and losing a job can cause family life to suffer." Hurts Communities: CBO argues that a cap-and-tax bill would also negatively impact communities and state and local governments. According to the CBO report, "In cases in which a shrinking industry was the primary employer in a community, the entire community could suffer." Possible effects on an affected community include the erosion of a local tax base as employment and economic activity drops and homes could decline in value as laid-off workers sell their homes and move away in search of employment. Hurts Rural America and Agriculture: The bill squarely targets farms and rural Americans. Rural residents spend 58 percent more on fuel and travel 25 percent farther to get to work than Americans living in urban areas. As prices for gasoline and fertilizer increase, rural America will correspondingly feel the greatest pinch. Importantly, 25 percent of U.S. farm cash receipts come from agriculture exports. U.S. farmers would be at a severe disadvantage compared to farmers in nations which do not have a cap-and-tax system and correspondingly high input costs. However, not only agricultural communities will feel the impact. Food and grocery prices across the country will increase as these high energy costs are passed along to the consumer, further straining families' budgets in every state. Without China and India: Without the cooperation of developing countries like China (the world's largest emitter of greenhouse gases) and India (expected to increase emissions by 104 percent between 2006 and 2030) global temperature reduction goals of cap-and-tax proponents cannot be attained. According to an MIT study, "With rapid growth in developing countries, failure to control their emissions could lead to a substantial increase in global temperature even if the U.S. and other developed countries pursue stringent policies." China and India have repeatedly warned that they have no intention of restricting their emissions.
Related Documents
October 05, 2010
Ozone Rule Would Kill 7.3 Million Jobs, Raise Costs Reports indicate that the Obama administration will soon finalize a new...
August 16, 2010
Democrats, Big Labor, and Radical Environmentalists Plot Rule Changes for Post-Election Climate Bill White House climate czar Carol...
August 12, 2010
For the past 20 months, President Obama’s Environmental Protection Agency (EPA) has waged a non-stop assault on U.S. jobs...
July 28, 2010
On Friday, July 30, 2010, the House is expected to consider H.R. 3534, the CLEAR Act. This legislation represents...
July 09, 2010
Carol Browner: Liability cap increase “will mean that you only have large companies.” White House climate czar Carol...
July 08, 2010
“Voters are overwhelmingly opposed to any policy they perceive as increasing taxes on energy and have little interest in...
July 08, 2010
According to a new study by the nonpartisan American Council for Capital Formation, cap-and-tax legislation such as the House-passed...
July 01, 2010
“You never want a serious crisis go to waste. And what I mean by that it's an opportunity to...
June 23, 2010
by Rep. Gregg Harper (MS) For nearly two months, oil has been flowing into the Gulf of Mexico from...
June 16, 2010
"From the beginning, the effort has been bedeviled by a lack of preparation, organization, urgency and clear lines of...
June 07, 2010
"The new Democratic strategy seems clear enough: try to capitalize on the unprecedented oil spill disaster unfolding in...
June 04, 2010
"In case you were wondering who's responsible, I take responsibility. It is my job to make sure that everything...
May 12, 2010
CBO Confirms Other Negative Impacts for Families and Communities According to a May 5, 2010, CBO report, under cap-and-tax...
May 05, 2010
“The American people deserve answers” Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, delivered...
January 29, 2010
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, issued the following statement today after...
December 16, 2009
All across this nation, families and businesses are struggling to make ends meet. Millions of Americans have lost their...
December 16, 2009
Republican Leadership Press Conference December 16, 2009 Participants: - Republican Leader John Boehner (R-OH) - Republican Whip Eric Cantor...
December 09, 2009
December 9, 2009 Participants: - Republican Leader John Boehner (R-OH) - Republican Whip Eric Cantor (R-VA) - Conference...
December 07, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference and the American Energy Solutions Group,...
December 07, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, issued the following statement today as...
September 16, 2009
Posted by Declan McCullagh September 15, 2009 9:03 PM The Obama administration has privately concluded that a cap...
August 25, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, made the following statement today after...
August 24, 2009
The House Republican Conference has compiled new data that has become available since the House passed the national energy...
July 27, 2009
Truth #20: Lights off in Homes, but Lights on for Art What the bill does: Mandates that...
July 24, 2009
Truth #19: Federal Government: If It Works, We’ll Replace It What the bill does: Provides taxpayer resources,...
July 22, 2009
Truth #17: Taxpayer Sponsored Infomercials What the bill does: Authorizes taxpayer money to be used by the...
July 21, 2009
Truth #16: Taxpayer-Funded “Carbon Content” Labels What the bill does: Authorizes $25 million of taxpayers’ money each...
July 20, 2009
Truth #15: Subsidizes Studies on Human Behavior What the bill does: Authorizes “such sums as may be necessary”...
July 17, 2009
Truth #14: No Household Appliance is Safe from Government Regulation What the bill does: The bill authorizes taxpayer...
July 16, 2009
Truth #13: Higher Energy Rates to Pay for Bike Paths in Senegal What the bill does: The federal...
July 15, 2009
Truth #12: Attempts to save trees in the Congo while forcing Americans to pay more for energy What...
July 14, 2009
Truth #11: Liberal Democrats Tell Real Estate Appraisers How to do Their Jobs What the bill does: Mandates...
July 13, 2009
Truth #10: Raises Electricity Prices and Kills Jobs What the bill does: The bill mandates a “cap” on...
July 10, 2009
Truth #9: Taxpayer Dollars to Help Developing Countries “Adapt” to Climate Change What the bill does: Requires the...
July 09, 2009
Truth #8: Increases Utility Rates on America’s Families and Businesses What the bill does: Mandates a Renewable Electricity...
July 08, 2009
Truth #7: Yet Another Taxpayer-Funded Giveaway to ACORN What the bill does: The bill allocates taxpayer funds to...
July 07, 2009
Truth #6: Uses American Tax Dollars to Plant Trees What the bill does: Authorizes such “sums as may...
July 06, 2009
Truth #5: Taxpayer-Funded Mobile Homes What the bill does: The Democrats’ national energy tax requires electricity providers and...
July 03, 2009
Truth #4: Promotes “Green Banks” At a Time of Record Job Losses What the bill does: Requires federal banking...
July 02, 2009
Truth #3: Creates the Largest Welfare Program in Our Nation’s History What the bill does: The bill...
July 01, 2009
Truth #2: Democrats Want Fannie and Freddie to do to our National Energy Policy what They Have Done to...
June 30, 2009
Truth # 1- Federal Government Intrusion: The Federal Government Wants to Tell You How to Build Your House...
June 26, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, made the following statement on the...
June 26, 2009
To view this clip on Bloomberg with Mark Crumpton, click here. Transcript below: Mark Crumpton: For more...
June 25, 2009
House Speaker Nancy Pelosi has put cap-and-trade legislation on a forced march through the House, and the bill may...
June 18, 2009
Based on the allowance allocation formula in H.R. 2454 for electricity consumers, the red states will not have enough...
June 11, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, made the following statement on the...
June 11, 2009
"‘I'm just estimating the number of votes that will be against this,' Peterson said. ‘I suspect that the list...
June 11, 2009
The Wall Street Journal The GOP's Energy Alternative We need more nuclear power. By Mike Pence,...
June 10, 2009
House GOP Brings Back 'All of the Above' as Response to Dems' Energy Agenda By Alex Kaplun, E&E reporter...
June 10, 2009
House Republicans Introduce Alternative to Speaker Pelosi's National Energy Tax Guest blog post by Rep. Mike Pence...
June 10, 2009
Transcript below: MIKA BRZEZINSKI: With us now Republican Representative from Indiana and Chairman of the House Republican...
June 10, 2009
New York Times: House Republicans Draft Energy Bill With Heavy Focus on Nuclear PowerAmerican Energy Solutions Group Chairman Mike...
June 10, 2009
The New York Times June 10, 2009 House Republicans Draft Energy Bill With Heavy Focus on Nuclear Power...
June 10, 2009
House Republicans recognize that as gas prices and home utility bills rise, American families are dealt an even greater economic...
June 10, 2009
"Today House Republicans are introducing the American Energy Act, an ‘all of the above' plan that offers energy independence,...
May 26, 2009
The House of Representatives isn't usually known for its shipbuilding skills. Nevertheless, thirty-six Members of the body have spent...
May 21, 2009
As Democrats push forward with a $646 billion national energy tax, Henry Waxman, chairman of the Energy and Commerce...
May 14, 2009
Democrat Charlie Rangel, Chairman, House Ways and Means Committee, was quoted in this evening's Congress Daily as saying:...
May 05, 2009
As prepared for delivery: U.S. Congressman Mike Pence, Chairman of the House Republican Conference, and Chair of the American...
May 01, 2009
Pence: Cap-and-Trade 'Declaration of War,' to Cost US Families $3,100/Year... Cap and Trade a ‘Declaration of War,' Say...
April 29, 2009
The Democrats' cap and tax plan is nothing more than a national energy tax.The truth behind the Democrat's cap and...
April 28, 2009
Rep. Kevin McCarthy (CA) and Rep. Steve Scalise (LA) spoke with bloggers today about the cap and tax energy...
April 27, 2009
After three days of hearing on the cap and tax global warming legislation last week, Republicans are billing it...
April 24, 2009
Washington, DC - U.S. Congressman Mike Pence, Chairman of the House Republican Conference, made the following statement today in...
April 24, 2009
Chairman Emeritus of Energy and Commerce Committee, John Dingell (D-MI), calls cap and trade as it is: ...
April 23, 2009
*This post originally published on Townhall.com by Rep. Steve Scalise (LA) President Obama is proposing a “cap and trade”...
April 23, 2009
Washington, DC – U.S. Congressman Mike Pence, Chairman of the House Republican Conference, made the following statement on the...
April 22, 2009
Summary Both Presidents Clinton and Obama called for a sweeping national energy tax in their inaugural budget submissions. In...
April 22, 2009
By John McCormack Weekly Standard April 22, 2009 It's just another inconvenient truth: If Americans want any...
April 22, 2009
6:52 p.m. The Democrat Energy Plan Cap and Trade: Caps Economic Growth and Trades Jobs Overseas...
April 21, 2009
STATUS On March 31, 2009, House Energy and Commerce Chairman Waxman (D-CA) and Energy and Environment Subcommittee Chairman Markey...
April 20, 2009
House Leader John Boehner appeared yesterday on "This Week" with George Stephanopoulos, saying legislators should beware of "trillion dollar...
March 20, 2009
Rep. Virginia Foxx (NC) has been stirring the pot lately, with her explosive House floor ventures and determined messages...
March 17, 2009
Taxing Too Much: The President's "Cap and Tax" ProposalMarch 17, 2009 Under my plan of a cap...
|
|