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CBO: Carbon Tax Will Hurt The Economy

Buried discreetly in the ‘climate’ section of the Washington Post:

Congressional Budget Office Director Douglas Elmendorf answers questions during a Senate Finance Committee hearing regarding health care reform on Capitol Hill in Washington, Tuesday, Oct. 13, 2009.

Cap-and-Trade Would Slow Economy, CBO Chief Says

By Juliet Eilperin
Thursday, October 15, 2009

A House-passed bill that targets climate change through a cap-and-trade system of pollution credits would slow the nation’s economic growth slightly over the next few decades and would create "significant" job losses from fossil fuel industries as the country shifts to renewable energy, the head of the Congressional Budget Office told a Senate energy panel Wednesday.

CBO Director Douglas W. Elmendorf emphasized that his estimates contained significant uncertainties and "do not include any benefits from averting climate change," but his message nevertheless contrasted sharply with those of President Obama and congressional Democratic leaders, who have suggested that a cap on carbon emissions would help revive the U.S. economy.

Elmendorf testified before the Senate Energy and Natural Resources Committee that the cap-and-trade provisions of the House bill — in which emitters of greenhouse gases would be able to buy and sell pollution credits — would cut the nation’s gross domestic product by 0.25 to 0.75 percent in 2020 compared with "what it would otherwise have been," and by 1 to 3.5 percent in 2050.

Elmendorf also pointed to disruptions that would occur as Americans sought employment with industries that would benefit under a carbon cap, such as solar and wind power.

"The shifts will be significant," the CBO director said. "We want to leave no misunderstanding that aggregate performance — the fact that jobs turn up somewhere else for some people — does not mean that there are not substantial costs borne by people, communities, firms in affected industries and affected areas. You saw that in manufacturing, and we would see that in response to changes that this legislation would produce."

In light of those potential risks, the CBO director said, "many economists believe that the right response to that kind of uncertainty is to take out some insurance, if you will, against some of the worst outcomes."

Rep. Edward J. Markey (D-Mass.), co-author of the House bill with Rep. Henry A. Waxman (D-Calif.), said that several independent analyses, including one by the CBO, had found their bill "would only cost about a postage stamp a day, and that’s before you include thousands of dollars in savings from energy-efficiency gains. The harsh reality is that America’s global warming and energy challenges are just too important for us to keep mailing it in by not enacting a comprehensive energy and global warming bill."

Daniel J. Weiss, a senior fellow at the liberal think tank Center for American Progress, pointed to a University of Massachusetts at Amherst study that concluded that the House bill would add jobs to the overall U.S. economy.

"We estimate this sustained expansion in clean-energy investments triggered by the economic stimulus program, and the forthcoming American Clean Energy and Security Act, can generate a net increase of about 1.7 million jobs," Weiss said.

Notice how quick The Post was to put in the demurrals that this is not a definitive report. It’s the second paragraph of the article:

CBO Director Douglas W. Elmendorf emphasized that his estimates contained significant uncertainties and "do not include any benefits from averting climate change" …

Funny how they don’t do that when anyone from the Congressional Budget Office says what they want to hear. Which of course would be printed on the front page, above the fold.

Note, too, that the Post reporter(ette) spends the bulk of the article defending the bill from the charge. Even going so far as the cite the stooges from the Soros front, the Center for American Progress.

Why is that?

By the way, in the history of the world has there ever been a tax that added jobs to the economy?

If so, then we could tax our way out of any unemployment crisis.

This article was posted by Steve on Thursday, October 15th, 2009. Comments are currently closed.

4 Responses to “CBO: Carbon Tax Will Hurt The Economy”

  1. No! No! No! Rush Limbaugh must not steal rams nor force Black folks to tend herd. Or something.

    Let’s stay on topic & report the important stuff. OK?


  2. proreason says:

    “CBO: Carbon Tax Will Hurt Economy”

    anybody notice a pattern

  3. Reality Bytes says:

    Right! And hitting your head with a mallet will give you a headache.

  4. Liberals Demise says:

    Will dingleBarry call the CBO into the Oracles Office for another talk about how wrong they could be?

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