What Will You Give Up to Fight Global Warming?
Nicolas Loris /
The current recession is causing Americans to take a second look at their household budget. Well, if Congress enacts cap and trade legislation, recently proposed by Chairman Henry Waxman (D-CA) of the Energy and Commerce Committee and Chairman Edward Markey (D-MA) of the Energy and Environment Subcommittee, families will have to take an even harder look at their budget and be forced to make additional cuts.
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.* For comparison, the chart below indicates how much typical household expenditures cost families.
Even if you’re fortunate enough to handle an additional $2,000 per year tax, think of all the low income families that must seriously consider eliminating one of these payments from their budgets. Sure, there’s discussion of rebate checks from “climate revenue” generation, but will they offset the costs of higher energy prices? Unlikely.