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  • Cap and Tax Will Force You to Make Budget Cuts: Part 2 in a 10-Part Series

    On April 20, President Obama called for $100 million in budget cuts after announcing spending increases of $4 trillion. Heritage Senior Policy Analyst Brian Riedl breaks it down nicely:

    • It is 1/40,000 of the federal budget;

    • It is 1/7,830 the size of the recent “stimulus” bill;

    • It would close 1/1,845 of this year’s budget deficit;

    • It is the amount the federal government spends every 13 minutes; and

    • For a family earning $40,000 annually, it is the equivalent of cutting $1 from their family budget.

    But if President Obama were to sign a cap and trade bill into law, he would have to call for familial budget cuts much greater than one dollar. (For a brief explanation of how cap and trade works, go here.) As recently acknowledged by a top White House official, a global warming tax could generate as much as $1.9 trillion in tax revenue over eight years, which amounts to a nearly $2,000 tax every year for every American household.* Add this up over the period of a few years and we’re talking about trillions of dollars in lost income for the entire U.S. economy.

    The current recession is causing Americans to take a second look at their household budget. A cap and trade plan would make them look even harder.

    *The Heritage Foundation’s Center for Data Analysis (CDA) calculations confirmed this. CDA took the CO2 allowance limits from the Lieberman-Warner cap and trade bill, which was more lax than the Waxman-Markey bill. CDA then multiplied the CO2 allowance for each year times our estimates for the allowance price for each year. The summation of these products for 8 years (2012-2019), divided by eight to get the average per year and divided that by the number of households (about 110-120 million households) gave us an average per household tax per year of nearly $2,000.

    cap-and-trade-budget

    Part 1: Cap-and-Tax is a Jobs Destroyer

    Posted in Energy [slideshow_deploy]

    14 Responses to Cap and Tax Will Force You to Make Budget Cuts: Part 2 in a 10-Part Series

    1. John franklin, wisco says:

      The numbers speak for themselves. Now we have to speak for our selves. This bill is sinful, Nice job!

    2. Paul Kizer Beckley, says:

      Cap and Trade will destroy the economy of West Virginia. West Virginia is one of the few States in the USA that is projecting a sulplus when our year ends on June 30. To the Dummies in DC; We are doing good leave us alone and take a 2 year vacation.

    3. Ben Franklin, Kendal says:

      I still don't understand how the government gets money from Cap & Trade. Can someone explain that piece of it?

    4. donna,new york says:

      disgrace thats about what sums up this administration . live in long island already costs a fortune. need to prayer for the next 3 years and 9 months.

    5. Lynn B. DeSpain says:

      What's new? Everytime Mr. Obamalamaloo opens his mouth, it costs us money! He can explain it away in any manner his FREE Harvard education trained him for, there are always the "Hidden" costs he never reveals.

      Lynn

    6. Joel Kneisley, Ohio says:

      REMEMBER… $4/gal gasoline in mid-2008 subtracted about $200 from each family/month — accelerating defaults on home mortgages — and pushing bank defaults.

      PROJECT… higher utility bills and inflated costs of living caused by Cap&Tax will subtract much more than $200/month… you project the future economy.

    7. Idarae Stockton, CA says:

      This won't be the end of it,He's trying to pull all the money from the US into the bank acounts of the "big bankers"it's a transfer to the "one world" All of the "flu epidemic" blaming our military of being "terrorists" ect. keeps us riled up so we don't see what Obama & his administration is doing,Our Constitution and every thing making this a free world is gone. He has had a lot of "secret" meetings with the globalist. Obama IS NOT AN AMERICAN. The bible tells the whole story, of where we are and what is going to happen. Read it and have peace.

    8. Sandy Orton/North Ea says:

      This is just the beginning. The biggest question is "HOW DO WE STOP THEM?" Cap and Trade will lead to other taxes being raised upon us. Today China has cut us off, where will Obama and his croney's get the money to pay for all of his wish list. How long is it going to take the people of this country to wake up and join a Tea Party and protest what Obama and the Congress are doing to us?

    9. Leon Durango, CO says:

      Explain why Al Gore can lie with impunity in a congressional hearing?

    10. John Overstreet says:

      Iam mad as hell and I am not taking it any more.I believe it is time for Americans to stand together and work hard to repeal the 16th Amendment.The money that I and many people in this great nation work hard for is being wasted by these idiots in Congress.

    11. mike baker Dallas Ce says:

      What do liberals lack that make them need more and more government control? Seriously, please.

    12. Richard, Spring, TX says:

      What surprises me is that there are only 10 comments on the subject. Al Gore was worth $2M when he was VP, today he is worth over $100M. If Cap and trade were to be passed, with the investments he has in the carbon trade industry, it is said he will be worth over $2B.

    13. Sherrill , NY/ NJ says:

      How about Nancy….what has her net worth gone up? and Dodd? and Obama? and Biden? and so many of the other professional political SERVANTS?

    14. Jeff, New Orleans says:

      Its all a scheme to get more people on the government dole. More people on the dole more votes for Democrats. More people dependent upon utility subsidies etc. Even people who want to pay their own bills the Democrats will tax them to the point where some people can't do it anymore and are forced onto the dole.

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