11,154 Dimes: President Obama's tax plan to increase taxes on 100% of Americans

Washington, DC – Data released today by the House Committee on Ways and Means demonstrates that every state in the Union – and every American – will be hit hard by a new and highly regressive “Cap and Trade” tax.

The President’s recently-released budget imposes a $3.01 billion tax on Utahns. On a per capita basis, each Utahn will be hit with $1,115.47 in new taxes on their electricity bill alone. Families will be hit even harder. The data show this new tax will increase the average Utah family’s (3.08 people/household) annual electricity bill by $3,435.65 or by nearly $290 per month. While other energy costs are low as a result of the recession, all energy costs will increase as the Administration increases the velocity of its frontal assault on American energy security.

At a recent congressional hearing on energy consumption, Mr. Howard Gruenspecht, an expert witness from the Energy Information Agency (EIA), a non-partisan federal agency dealing with energy issues, was asked what percent of Americans consume some form of energy. He replied: “All of them.” Further, he was also asked what percent of Americans would be impacted by a cap and trade tax. His answer: “Probably all of them.”

Since everyone in America consumes energy, then everyone in America will suffer the consequences of the Obama Administration’s foolhardy proposal to regulate climate change through so-called “Cap and Trade (Tax)” policies. The Administration’s proposal will not only further cripple the economy, it will impose a crushing energy consumption tax on every man, woman, and child in the United States.

In response to this proposal, Congressman Jason Chaffetz said, “With so many individuals already living on the margins, this massive new tax increase will destroy our hope of recovering from the current recession. The financial security of all Americans will be jeopardized if this tax is enacted. Now is not the time to increase taxes, nor is this the way. Despite the President’s assurances that 95 percent of Americans will not see their taxes increase by one dime, the numbers clearly show his plan will actually increase taxes on 100 percent of Americans.”

Congressman Rob Bishop said, “Cap and Tax would be a tremendous burden on all Utahns, but thankfully it is not the only option we have to reach clean air goals. The Western Caucus will introduce other, better options for Congress that meet clean air goals without raising energy costs for all Americans. There are better ways, and we will fight for them.”

New Analysis Shows Massive Spike in Electricity Prices Under Cap-and-Tax (a.k.a Cap-and-Trade)

Washington, DC – Ways and Means Ranking Member Dave Camp (R-MI) issued the following statement during today’s committee hearing addressing price volatility in climate change legislation. The graph below shows the state-by-state analysis of annual increases in electricity costs that would occur under a 100% auction, as President Obama has called for, to meet his target carbon emission reductions:

“As the data suggests, in almost every case, cap-and-tax increases electricity rates and causes hardships for American families. In the past, providing incentives for renewable and alternate forms of energy has worked at lowering emissions. Congress should not resort to using penalties of an unproven cap-and-tax system that only serves to put millions of Americans out of work and skyrocket the cost of electricity for American families.”

To read Rep. Camp’s full statement from today’s hearing on “Addressing Price Volatility in Climate Change Legislation” click here.

Annual Increase in Electricity Costs
(based on the Stern Review’s recommended carbon price of $85 per ton)

State	Cost at 100% Auction (in millions)	Increase in Electricity Costs per Capita
.Alabama	7124.6	$1,528.26
.Alaska	367.5	$535.49
.Arizona	4365.3	$671.57
.Arkansas	2240.6	$784.69
.California	4647.8	$126.45
.Colorado	3471.5	$702.81
.Connecticut	981	$280.19
.Delaware	19.9	$22.79
.District of Columbia	578.4	$977.30
.Florida	11077.6	$604.40
.Georgia	7586.5	$783.26
.Hawaii	767.6	$595.87
.Idaho	113.4	$74.42
.Illinois	8567.2	$664.04
.Indiana	10378	$1,627.46
.Iowa	3417.6	$1,138.23
.Kansas	3199.6	$1,141.84
.Kentucky	7677.1	$1,798.23
.Louisiana	4853.6	$1,100.39
.Maine	599.9	$455.69
.Maryland	2832.7	$502.82
.Massachusetts	2279.6	$350.82
.Michigan	6691.7	$668.94
.Minnesota	3304.7	$633.04
.Mississippi	2137.4	$727.35
.Missouri	6785.5	$1,147.83
.Montana	1661.7	$1,717.63
.Nebraska	1876.7	$1,052.30
.Nevada	2206.1	$848.45
.New Hampshire	694.1	$527.51
.New Jersey	1793.8	$206.60
.New Mexico	2782.9	$1,402.42
.New York	5137.8	$263.61
.North Carolina	6450.7	$699.46
.North Dakota	2790.8	$4,350.56
.Ohio	11205.6	$975.60
.Oklahoma	4373.3	$1,200.68
.Oregon	762.1	$201.08
.Pennsylvania	10770.6	$865.23
.Rhode Island	221.2	$210.51
.South Carolina	3473.7	$775.41
.South Dakota	280.5	$348.80
.Tennessee	5090	$819.00
.Texas	21986.2	$903.78
.Utah	3052.4	$1,115.47
.Vermont	1.2	$1.93
.Virginia	4055.2	$521.97
.Washington	1267.1	$193.47
.West Virginia	7207.6	$3,972.29
.Wisconsin	4587.4	$815.11
.Wyoming	3861.6	$7,249.54

5 comments so far

blogdor

Good to see that Californians won’t be hit too hard. That’s what you get for always bad mouthing us.

April 1st, 2009 at 10:09 pm

Oh yeah, in other news, our state sales tax increased by 1% today. I’m now paying 8.75% on everything I buy.

Harrison

Don’t forget about the death tax and cigarette tax, either.

April 3rd, 2009 at 2:43 am

admin

Of course this whole crap and trade system is a way to get energy producing states to subsidize those states who refuse to produce energy. You look at the list of the states who will pay the most, and they are states with abundant energy resources.

April 3rd, 2009 at 4:47 am

Those states also have lower income residents. Overall, Obama’s “cap and trade” will force poorer people to pay more, raise unemployment, and increase the “exporting” of jobs not to mention make us less competitive as a nation. Sounds like a plan!

April 3rd, 2009 at 7:36 pm