The High Costs of Cap-and-Trade
To the Economy:
- Further loss of U.S. jobs: 2.4 million jobs by 2030.
- Loss to overall economic activity: $3.1 trillion cumulative loss between 2012 and 2030.
- SOURCE: National Association of Manufacturers (NAM)* (EnergyCitizens.org estimates the loss to be 3 million.)
To the Taxpayers:
- $4.2 billion in new federal spending from 2011 to 2016 for short-term government subsidies for former employees who lose their jobs in the manufacturing, oil, coal and other fossil-fuel sectors (70 percent of current salaries for up to 3 years).
- Tens of billions every year for Monthly Energy Refund assistance – or “Energy Stamps”– for families or individuals earning up to 150 percent of the poverty income level. Current projections are that this taxpayer subsidy would include nearly
65 million (1 out of every 5) Americans. Costs to taxpayers have not yet been admitted by the Democrats for this program, conceived to be similar to the subsidized food stamp program. However, the smaller food stamp program costs taxpayers $56 billion per year. - SOURCE: U.S. News and World Report. Heritage Foundation.
To the Consumers:
- Higher prices on all forms of energy – equivalent to hiking every wage earner’s
personal income tax by 15 percent. Gasoline prices would increase by as much as
26 percent by 2030, electricity would rise by 54 percent, and natural gas by
77 percent. - SOURCE: NAM (Similar projections were made by the American Petroleum Institute), and the U.S. Treasury Department in a study conducted in March of 2009
To Texas:
- Lost Jobs: As many as 196,000 jobs would be lost by 2030 – the second highest projected job loss among all states as a result of Cap-and-Trade.
- Economic Decline: Economic output in Texas would decline by as much as $4.9 billion per year by 2020, and by as much as $40.8 billion by 2030.
- SOURCE: NAM - confirmed in a study released by the Texas Comptroller, Susan Combs.
*Study conducted by Science Applications International Corporation (SAIC) for American Council for Capital Formation (ACCF) and National Association of Manufacturers (NAM), August 12, 2009.
