• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Breaking Down the Costs of Waxman-Markey Global Warming Legislation

    The idea behind cap and trade is to reduce carbon dioxide emissions by putting a price on the right to emit carbon and other greenhouse gases on businesses. Because fossil fuels emit carbon dioxide, cap and trade becomes a costly tax on fossil fuels and the energy they generate. Since 85 percent of America’s energy needs come from fossil fuels, cap and trade would be massive tax on energy consumption if enacted. How high a tax?

    The Heritage Foundation’s Center for Data Analysis found that by 2035 gasoline prices would increase 58 percent, natural gas prices would increase 55 percent, home heating oil would increase 56 percent, and worst of all, electricity prices would jump 90 percent.

    But the direct tax on household energy use is just the beginning. The energy tax also hits producers. As the higher production costs ripple through the economy, the household pocketbooks get hit again and again. When all the tax impacts have been added up, the average per-family-of-four costs rise by $2,979 per year. In the year 2035 alone, the cost is $4,609. And the costs per family for the whole energy tax aggregated from 2012 to 2035 are $71,493.


    But just about everything we produce uses energy. As energy prices increase, those costs will be passed onto the consumer and reflected in the higher prices we pay for products. Higher energy prices also result in a slower economy, which means less production, higher unemployment and reduced income.

    • Over the 2012-2030 timeline, job losses average over 1.1 million. By 2035, a projected 2.5 million jobs are lost below the baseline (without a cap and trade bill).
    • The average Gross Domestic Product (GDP) lost is $393 billion, hitting a high of $662 billion in 2035. From 2012-2035, the accumulated GDP lost is $9.4 trillion.
    • The negative economic impacts accumulate, and the national debt is no exception. The increase in family-of-four debt, solely because of Waxman-Markey, hits an almost unbelievable $114,915 by 2035.
    • The average of the climate tax revenue, what the government gets to spend or give away, is $236 billion from 2012 through 2035 and adds up to $5.7 trillion in tax collections.

    In the name of saving our planet from “catastrophic global warming” for future generations, what we’re really doing is ensuring they live in a world with less opportunity and paying for our mistakes through increased debt, all for a change in the temperature too small to ever notice. All of these costs accrue in the first 25 years of a 90-year program that, as calculated by climatologists, will lower temperatures by only hundredths of a degree in 2050 and no more than two-tenths of a degree at the end of the century.

    Posted in Energy [slideshow_deploy]

    26 Responses to Breaking Down the Costs of Waxman-Markey Global Warming Legislation

    1. Monica from ACCCE says:

      What could be greener than taking our most abundant and affordable energy resource – coal – and making it cleaner through advanced technology?

      During the America’s Power Factuality Tour, we’ve been traveling around the country talking to the people who are behind the production of cleaner electricity from coal.

      That’s why we stopped by Mattoon, Ill., the proposed site of FutureGen, a public-private partnership to build the world’s first near-zero emissions coal-based power plant. Citizens and legislators are continuing to work towards the original plan – and town residents are excited, too. They understand what a great boost the plant will be to the local economy – and how much the technology will mean to the rest of the world.


    2. Pingback: PA Pundits - International

    3. Paul Terry Stone says:

      The idea behind Cap and Trade legislation is so impractical. At this rate, it could well become against the law to breathe and therefore emit carbon dioxide.

    4. PDS, NC says:

      Global Warming is a farce. The ONLY ones that benefit from this topic are the $$$ connected politions and the corporation selling products.

      Will we all have to wear fart bags someday to catch our gas? I wonder if GE is already developing that.

    5. Metalchemist says:

      Waxman is another political weasel that just follows the party line, attempting to force the Vindictive AGENDA on America. Taxing us into oblivion to further the illegal aliens invasion of this Nation.

      Waxman must go.

    6. M.L.P. Bellingham, says:

      Global warming is such a hoax! What of the nine inches of hail in North Dakota in mid-June. What of the declining global temperature the past few years? Cap and Trade is all about control and money.

    7. Richard, Spring TX says:

      Two-tenths of a degree now that's value for your tax dollar. This is the biggest tax scam to hit worlds taxpayers.

    8. Pingback: Conservative Compendium » We’re All Gonna Die! Pt. 20

    9. Pingback: Breaking Down the Costs of Waxman-Markey Global Warming Legislation | Agriculture

    10. Marshall Hill MI. says:

      Taxing the American Spirit into more activism against the Government! 2010!!!

    11. Bobbi, W.Orange, NJ says:

      Let me get this straight: Between 2012 and 2035, Congress will spend $9.4 trillion to take in $5.7 trillion?!? So we're going to run a deficit, in this bill alone, of $4.3 trillion in order to "maybe" reduce global temperatures by a mere hundredth of a degree. Why is anyone with an ounce of common sense even considering this?

    12. Pingback: Cooler Heads Digest 23 June 2009 | GlobalWarming.org

    13. Pingback: Republican Leader John Boehner | Speaker Pelosi Will Bring Job-Killing National Energy Tax to the Floor this Week

    14. The Jimmy Z Show, Th says:

      I'm going exhale more often, in protest, just to anger the eco-nazis.

    15. Pingback: Breaking Down the Costs of Waxman-Markey Global Warming Legislation » The Foundry « Mind Mining…dig for knowledge

    16. Tim, Brentwood CA says:

      This insanity has got to stop. If they can pass laws forbidding the use of a sticker that says, "Evolution is only one of many theories…" Why can't we pass laws that will stop the distribution of "Al Gore's Big Comic Book of Science" (each edition contains a shiny tinfoil hat)? The man may be sincere, but he's also on the lunatic fringe when it comes to environmental science. If "Cap & Trade" passes it's "Bye-bye" to the American way of life.

    17. Pingback: Cost of Waxman Markey Global Warming (BS) Legislation - Truckingboards

    18. JP, Greensboro, NC says:

      Call your representatives now. Do you think anyone has read the new version (introduced this Monday) that is 1200 pgs. long? Of course not. We need to stop this…but, more than that, we need to stop these crooks from throwing up a "smoke screen" like the ABC broadcast tonight on healthcare reform just so they can HURRY HURRY HURRY up the vote. (Also right before vacation.) Sneaky and dishonest, just like the bill. Just like the stimulus.

    19. Jeanne Gresham, O says:

      We as American citizens are becoming the victims of less than honorable leaders and it seems anything that produces a buck for the higher ups is a go regardless of what it does to the rest of us. When are we going to get up in arms and do something to stop this? Like vote in some responsible leaders.

    20. Pingback: Cap and Trade at lightning speed | The Political Fish

    21. Patricia Kaufman, NY says:

      American citizens are becoming the pawns in "Big governmant insanity".

      They think the answer to everything

      is to raise taxes and do not care about the "cause & effect"….the more taxes the less revenues….what has happened to our country. I'm glad my father, who fought in WW2 and taught me to love my country and defend it,

      is no longer here to see what is happening.

    22. Mark Fletcher says:

      I live in Jay Inslees' district in WA. What do you think the odds of changing his mind are. I am going to do anything I can to defeat him in the next election. We must get the house back next year.

    23. Pingback: The Price of Going Green | The Republic of Dave

    24. Pingback: The Hamilton Post › H.R. 2454 – The American Clean Energy and Security Act

    25. Pingback: The Price of Going Green | Republican Liberty Caucus

    26. Pingback: The Cost of Waxman’s Folly | The Liberty Ledger

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.