Waxman-Markey Global Warming Bill: Economic Impact by Congressional District
HERITAGE FOUNDATION
by Karen Campbell, Ph.D. and David Kreutzer, Ph.D.
WebMemo #2504
It has become quite clear over the past several months that placing a cap on carbon emission--via rationing, taxing, and eliminating consumer choice--will have major implications for American families and the economy.
An analysis of the Waxman-Markey bill (as reported out of the House Committee on Energy and Commerce) by The Heritage Foundation found that unemployment will increase by nearly 2 million in 2012, the first year of the program, and reach nearly 2.5 million in 2035, the last year of the analysis.
Total GDP loss by 2035 would be $9.4 trillion. The national debt would balloon as the economy slowed, saddling a family of four with $114,915 of additional national debt. Families would also suffer, as the bill would slap the equivalent of a $4,609 tax on a family of four by 2035.[1]
Heritage is not alone in its assessment. The National Black Chamber of Commerce[2] and the Brookings Institution[3] also project huge job losses. Proponents of a national energy tax will quickly point to a recent Congressional Budget Office memo[4] and Environmental Protection Agency[5] analysis suggesting low per family costs. Those estimates are grossly inaccurate, as both the CBO memo and the EPA's analysis contain flaws too serious for use as measures of the economic impact...[Read More]
