Buttle's World

2 July, 2009

Think Cap-And-Trade is Expensive?

Filed under: Posts — clgood @ 9:32

You have no idea.

The United States emits about 9 billion tons of CO2 per year. Therefore, at a rate of $15/ton fee for emission indulgences, the bill would impose a tax of $135 billion per year on the nation. Divided by the U.S. population of 300 million, that works out to a cost of $450 per year levied on every American man, woman or child, or $1,800 for a family of four. While for wealthy individuals like Al Gore such an impost might represent a mere pittance, for working families struggling hard to make ends meet it would be a very significant burden.

But that is not even the worst part of it. As a result of the markup of carbon costs, a lot of those working families will be out of work and unable to pay their existing bills, let alone new ones. Consider: Burning one ton of coal produces about three tons of CO2. So a tax of $15 per ton of CO2 emitted is equivalent to a tax of $45/ton on coal. The price of Eastern anthracite coal runs in the neighborhood of $45/ton, so under the proposed system, such coal would be taxed at a rate of about 100 percent. The price of Western bituminous coal is currently about $12/ton. This coal would therefore be taxed at a rate of almost 400 percent. Coal provides half of America’s electricity, so such extraordinary imposts could easily double the electric bills paid by consumers and businesses across half the nation. In addition, many businesses, such as the metals and chemical industries, use a great deal of coal directly. By doubling or potentially even quadrupling the cost of their most basic feedstock, the cap-and-trade system’s indulgence fees could make many such businesses uncompetitive and ultimately throw millions of working men and women onto the unemployment lines.

And that doesn’t even count what it will do to the world food supply. Read the whole thing.

Update:

It’s not just coal and food. There’s what it’ll do to the price of oil.

Another Update, and bumped:

Oh, and private homeowners will have to perform federally-mandated upgrades to their homes when they sell them. (Where in the constitution is congress authorized to do this, again?) Anyway, that’s just the tip of the iceberg.

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1 Comment »

  1. Don’t believe this is not a tax on those making under $250,000 and 95% of Americans will not get taxed. Everything this bill touches will go down the FOOD chain. Gas, electricity, food, products and services. Everything will go up, but it’s not a tax on you. Not to mention man made climate change is a myth.

    http://animal-farm.us/change/more-on-crap-trade-491

    Comment by Foxwood — 1 July, 2009 @ 19:55


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