Wednesday, April 22, 2009

cap and trade could cost the average household more than $3,900 per year

The MIT braintrust has done some refiguring and it turns out the Republicans may be a bit closer to the truth on this one.

From the Weekly Standard:

It's just another inconvenient truth: If Americans want any of the government remedies that would supposedly save a planet allegedly imperiled by global warming, it's going to cost them.

Just how much it will cost them has been a point of contention lately. Many congressional Republicans, including members of the GOP leadership, have claimed that the plan to limit carbon emissions through cap and trade would cost the average household more than $3,100 per year. According to an MIT study, between 2015 and 2050 cap and trade would annually raise an average of $366 billion in revenues (divided by 117 million households equals $3,128 per household, the Republicans reckon).

...In other words, Reilly estimates that "the amount of tax collected" through companies would equal $3,128 per household--and "Those costs do get passed to consumers and income earners
in one way or another"--but those costs have "nothing to do with the real cost" to the economy. Reilly assumes that the $3,128 will be "returned" to each household. Without that assumption, Reilly wrote, "the cost would then be the Republican estimate [$3,128] plus the cost I estimate [$800]."...(

1 comment:

Euripides said...

We need to keep in mind that this cap and trade scheme will effect everyone, the poor as well as the rich. So much for Obama's promises not to raise taxes on the poor. This sort of thing is just the tip of the iceberg when it comes to liberal taxing schemes. We need to change the outlook of Congress very quickly or we will soon be mired in taxes and regulations that we may never recover.