The Real Cost of Cap and Trade

by John Michael Rivera on November 22, 2009

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The real cost of the climate change legislation designed by Henry Waxman (D-CA) and Edward Markey (D-MA), also know as “cap and trade”, will be staggering. Previous studied by the Congressional Budget Office (CBO) and Environmental Protection Agency (EPA) grossly underestimate the cost of the 1,427-page bill.

The following are highlights of the cost of the bill as reported in an analysis by the Heritage Foundation:

  • Gasoline prices will rise 58 percent (or $1.38);
  • Natural gas prices will rise 55 percent;
  • Heating oil prices will rise 56 percent;
  • Electricity prices will rise 90 percent;
  • A family of four can expect its per-year energy costs to rise by $1,241;
  • Including taxes, a family of four will pay an additional $4,609 per year;
  • A family of four will reduce its consumption of goods and services by up to $3,000 per year, as its income and savings fall;
  • Aggregate GDP losses will be $9.4 trillion;
  • Aggregate cap-and-trade energy taxes will be $5.7 trillion;
  • Job losses will be nearly 2.5 million; and
  • The national debt will rise an additional $12,803 per person ($51,212 per family of four).

The Waxman-Markey bill will substantially raise the cost of energy for all Americans. To get the full details, read the Heritage Foundation study.

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