CBO Says Kerry-Lieberman is Multi-Billion Dollar National Energy Tax

CBO Says Kerry-Lieberman is Multi-Billion Dollar National Energy Tax

As Americans Maintain Overwhelming Opposition to New Energy Taxes

JULY 8, 2010

“Voters are overwhelmingly opposed to any policy they perceive as increasing taxes on energy and have little interest in seeing climate legislation become reality.”                 — E&E News, 7/7/2010

“CBO and JCT estimate that this legislation would increase revenues by about $751 billion over the 2011-2020 period and direct spending by $732 billion over that 10-year period.”      —Congressional Budget Office letter to Sen. John Kerry (D-MA), 7/7/2010

 

CBO Confirms National Energy Tax in Kerry-Lieberman:  In a July 7, 2010, letter to Sen. John Kerry (D-MA), the Congressional Budget Office (CBO) confirmed that the draft climate change bill that he drafted with Sen. Joe Lieberman (I-CT) would amount to a $751 billion national energy tax over ten years.  This massive tax increase would be accompanied by $732 billion in new federal government spending.  Over five years starting in 2011, the bill adds $8 billion to the deficit.

The Kerry-Lieberman climate bill seeks to reduce greenhouse gas emissions by increasing the price of energy, thus dissuading its use.  Specifically, the Environmental Protection Agency (EPA) would set up a cap-and-trade system under which emissions allowances are sold to businesses, utilities, etc. and the cost of these federal allowances would be passed through to consumers in the form of higher gas prices, utility bills, and the cost of everyday products on the shelf. 

Earlier this year, CBO confirmed that a cap-and-trade 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.  According to CBO, cap-and-trade would also force individuals onto Obamacare as they lose their jobs and employer-provided health care due to the national energy tax, harm affected communities by eroding the local tax base as employment and economic activity drops, and cause home values to decline when laid-off workers sell their homes and move away in search of employment.

Americans Continue to Yell “Stop” in New Poll:  A newly released national poll, conducted in late June 2010 by Mark Blakenship Enterprises, shows that Americans continue to be overwhelmingly opposed to legislation such as the Kerry-Lieberman bill or the House version, Waxman-Markey, that would increase taxes on energy.  The poll which surveyed 1,005 voters (more Democrats than Republicans) has a 3 percent margin of error.  The poll finds that:

  • 94 percent of voters say that new energy taxes would hit lower- or middle-income citizens the hardest.
  • 70 percent of voters oppose public policy that would include new energy taxes in order to reduce greenhouse gas emissions.
  • 70 percent of voters believe that taxing energy will not  “reduce global warming.”
  • 64 percent of voters say the BP oil spill makes no difference in their support for a climate bill.
  • 61 percent of voters oppose any increase in gasoline taxes.
  • 47 percent of voters believe that new energy taxes would kill jobs; 15 percent believe jobs would be created.
  • 3 percent of voters believe that global warming is the issue which Congress should address first.  Out of environmental issues, global warming places behind boosting energy efficiency and reducing water pollution.

Cap-and-trade will not cap the well.  Stopping and cleaning up the BP oil spill in the Gulf of Mexico is the immediate crisis at hand.  President Obama and Congressional Democrats should not exploit the disaster to advance anti-energy initiatives such as Kerry-Lieberman which will not stop the well from leaking but will raise the cost of energy on every American and stunt economic recovery.  Republicans and the American people continue to support an “all of the above” energy policy that promotes  energy independence, job creation, and a cleaner environment through greater efficiency, developing nuclear, renewable and alternative sources, and the expanded, environmentally-responsible development of  America’s energy resources.