Free Markets, Free People

Cap-And-Trade = $1,726 Per Family Per Year

That number doesn’t come from some opposition think tank or the CBO. According to CBS, that number is one calculated by the administration as the cost of Waxman-Markey:

The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.

A previously unreleased analysis prepared by the U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year. At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.

Interestingly, the Heritage Foundation, a right-wing think tank, put the cost at $1,500 a few months ago and were slammed for using scare tactics to try to defeat the bill. Other estimates range as high as $3,100. Democrats have used $800 a year as their estimate based on a study by MIT’s John Reilly.

The FOIA’d document written by Judson Jaffe, who joined the Treasury Department’s Office of Environment and Energy in January 2009, says: “Given the administration’s proposal to auction all emission allowances, a cap-and-trade program could generate federal receipts on the order of $100 to $200 billion annually.” (Obviously, any final cap-and-trade system may be different from what Obama had proposed, and could yield higher or lower taxes.)

Because personal income tax revenues bring in around $1.37 trillion a year, a $200 billion additional tax would be the equivalent of a 15 percent increase a year. A $100 billion additional tax would represent a 7 or 8 percent increase a year.

Of course, whatever the cost, it will hit those who can least afford it the hardest. What will that mean? Well, if history is any indication, it means a certain percentage of the population will be subsidized by another percentage of the population. Whether in the form of tax credits (unlikely, since the segment of the population likely to need help probably doesn’t pay taxes anyway) or direct subsidization, it will end up as a giant, bureaucratic redistribution scheme riddled with fraud, waste and abuse. For some families the cost will be close to zero. For others it will be well above $1,726 per family when they pay for those subsidies in other taxes.

And Jimmy Carter doesn’t yet understand why people are angry? Buy a clue, Mr. Carter.

~McQ

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22 Responses to Cap-And-Trade = $1,726 Per Family Per Year

  • “I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.” – Barack Obama

    Is that a lie? What does qualify as a lie for this guy?

  • They’re angry at cap and trade because they’re racists!

    (Notice how “they’re racists” is so overused it now takes the place of “It’s Rove’s fault” all the time? I swear, it’s hard keeping my material up to date the way they shift gears so fast.)

  • Perhaps the savings from more efficient healthcare can help offset this as well?

    Just consider how much we will save if 45% of docs do quit.

  • Hey, I’m willing to effectively lose about $150 per month to SAVE THE PLANET!

    / sarc

    The dems like to b*tch about conservatives using fear tactics to oppose their schemes, but the fact of the matter is that the dems use fear tactics:

    “Support our plan or else people will die!”

    “Support our plan or else medical costs will bankrupt the country!”

    “Support our plan or else the world will come to an end!”

    It’s a con game on a national scale. And people fall for it.

    Bah.

  • As I have predicted, Crap & Trade is DEAD. Dead as a doornail. Deader than Ted Kennedy. Dead, dead, dead, dead, dead.

    It is dead. Gombye, people…it is D-E-A-D.

    End of subject.

    • Gee, James, what do you think the odds of passing cap and trade are?

      • “Gee, James, what do you think the odds of passing cap and trade are?”

        The odds are better that Walter Cronkite will be anchoring the NBC News next week than this turkey has of being passed. And, to be honest, I think there is a better chance that Ted Kennedy will drive up in a sporty new Oldsmobuick, right up to Capitol Hill, than the odds are of this thing getting passed now.

        Then again, knowing how awfully imbecilic Democrats can be, one should never say “never.” But I think even the most moronic Demmies in the Senate, which even includes the 7 dipsh!ts who voted to keep funding ACORN, would see a bill of $1,700 going out of their constituents’ pockets and realize that a vote for it is a vote to cut their own throats. Demmies might be stoopid when it comes to normal things, like reading bills and economics, but when it comes to sheer survival they know who butters their bread and who doesn’t. And this crap doesn’t.

    • I hope you’re right, but I don’t think that you are. It might be dead THIS YEAR, but do you really think that libs are going to give up such a splendid way to rob taxpayers of even more money and give government (i.e. them) even more control over us? So long as they can con a significant number of people – or even just MiniTru – into believing the BS about CO2 and global warming, they’ll keep trying. After all, they’re trying to SAVE THE PLANET!

      • “I hope you’re right, but I don’t think that you are. It might be dead THIS YEAR, but do you really think that libs are going to give up such a splendid way to rob taxpayers of even more money and give government (i.e. them) even more control over us?”

        Actually, if Crap & Trade is dead this year, it is dead for a long time. Because as soon as the calendar turns to say “2010,” the Demmies will tread rather lightly, especially when it comes to such touchy legislation being passed. And remember no Republicans will vote for it, and no Demmy wants to be tarred over their party going this one alone.

        Nah, wait just until the recess in November, and this thing will be dead. Because in 2010 it ain’t passing, and come next November, when the Demmies have their heads handed to them (a la 1894?) in the midterms, they won’t be able to pass a kidney stone without Republican help, which ain’t coming.

        I like to keep up on predictions, so here goes, as of today, 16 September:

        House: GOP, +45 seats.
        Senate: GOP, +4 seats.

        Keep your eyes peeled as we get closer to that all important November 2010 election date. Remember: you heard it here first.

  • Could someone please explain how emptying my wallet into AlGores, makes the sun shine less?

  • people aren’t angry at the President because he’s black.

    They’re angry at him because he’s Red.

  • Just came across this blog today, and really enjoyed it! Keep up the good work.

    I posted a very funny YouTube video about Obama and the current debate over the size of government today on my site. Check it out:

    http://rjmoeller.com/2009/09/obama-and-the-white-stripes-a-youtube/

  • It’s the “Rule of 8″ ladies and gentlemen.
    ———–
    McQ danced all over with the red tape, corruption, some pay some don’t stuff but in his next to last sentence he said “..well above $1726…”.
    ———–
    Yes, WELL above that.
    ——————–
    The Rule of 8 says you will pay 8 times that amount before its said and done. History proves this.
    ——————–
    I keep my pitchfork in the fire these days so it’ll be nice and white hot when the time comes…..

  • There’s NO WAY the cap and trade will pass the senate. It’s political suicide to pass this monstrosity.

    • I think the left is generally suicidal.

      I would not be surprised to find their intent is to wreck so much havoc that the US doesn’t recover. Ever.

      If they were never elected again, at least they would have completed their task of major irrevocable damage or destruction.

  • I wonder if they’re only calculating how much the tax would be directly.

    Figure in the flow through costs and it’s going to be a lot higher, possibly the $3100 figure.

    A nice chunk of CHANGE for the sake of 0.04C temperature change that is happening already.

    OBAMA MAKES THE SUN SHINE LESS!

  • Think that climate change is a “crisis” that needs to be properly “solved”. Even if this crisis is not strictly real, something has to be done, something that involves a strong commitment to the enviroment and requires sacrifice.

    And since the proper solution to any political challenge is small government, lets make a commitment to save the planet by sacrificing big government. Face the crisis of climate change by sacrificing any manner of big government, over-reaching, over-spending, social engineering, clap trap even if it hurts.

    Neo-lib solution to climate change (draft)?

    A- put in place a high VAT on carbon footprints so consumer choice drives us forward.

    B- Empower that consumer:
    1. Slash income tax (to a capped 10%, 5%, 2%, 0% – whatever).
    2. Pare back the states economic involvement.
    3. End government borrowing.

    If consumer spending (A)is the “great good” with which we will “save the planet” and the total economy consists of consumer or state spending – we need to radically reduce the states involvement (B) so that it does not inhibit the “great good”.

  • I am waiting for Erb to come on here and tell us not only what a fine piece of legislation (“it is so, like, forward thinking”) Crap & Trade is, but why he foresees it getting passed in the Senate by heroic Demmies fighting off those evil Republicans, who dare to try to defend the rights of the American public not to be raped by the Congress.

    Erb, where are you? Erb, come in, Erb!

  • How many daily frou-frou Starbucks drinks does this work out to?

  • “Not one dime!”

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    Have a nice day