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WH: Carbon Tax To Cost $1,761 A Year

From, of all places, CBS News:

Obama Admin: Cap And Trade Could Cost Families $1,761 A Year

September 15, 2009

The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.

A previously unreleased analysis prepared by the U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year. At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.

A second memorandum, which was prepared for Obama’s transition team after the November election, says this about climate change policies: "Economic costs will likely be on the order of 1 percent of GDP, making them equal in scale to all existing environmental regulation."

The documents (PDF) were obtained under the Freedom of Information Act by the free-market Competitive Enterprise Institute and released on Tuesday.

These disclosures will probably not aid the political prospects of the Democrats’ cap and trade bill. The House of Representatives approved it by a remarkably narrow margin in June — the bill would have failed if only six House members had switched their votes to "no" — and it faces significant opposition in the Senate.

One reason the bill faces an uncertain future is concern about its cost. House Republican Leader John Boehner has estimated the additional tax bill would be at $366 billion a year, or $3,100 a year per family. Democrats have pointed to estimates from MIT’s John Reilly, who put the cost at $800 a year per family, and noted that tax credits to low income households could offset part of the bite. The Heritage Foundation says that, by 2035, "the typical family of four will see its direct energy costs rise by over $1,500 per year."

Because personal income tax revenues bring in around $1.37 trillion a year, a $200 billion additional tax would be the equivalent of a 15 percent increase a year. A $100 billion additional tax would represent a 7 or 8 percent increase a year.

One odd point: The document written by Jaffee includes this line: "It will raise energy prices and impose annual costs on the order of XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX." The Treasury Department redacted the rest of the sentence with a thick black line.

The Freedom of Information Act, of course, contains no this-might-embarrass-the-president exemption (nor, for that matter, should federal agencies be in the business of possibly suppressing dissenting climate change voices). You’d hope the presidential administration that boasts of being the "most open and transparent in history" would be more forthcoming than this.

Notice that the Obama administration did not admit this in public.

Also note that news of this is only coming out because it ferreted out by the “free-market” Competitive Enterprise Institute.

And not our vaunted watchdog media.

This article was posted by Steve on Wednesday, September 16th, 2009. Comments are currently closed.

25 Responses to “WH: Carbon Tax To Cost $1,761 A Year”

  1. catie says:

    I don’t know about you all but I don’t have another $1,761 to give to Uncle Sam.

  2. Reality Bytes says:

    And they laugh when I say the Middle Ages are making a come back!

    So I looked it up. Hmmm, brought on by the sacking & fall of Rome you say. Why what a coincidence; decayed from within you say?! My My! Overrun by Huns?! Why they’ve been very civilized as of late & make fine automobiles now. Then again there is that little Islamic terrorism thing we’ve been dealing with lately. But really, if we pay no attention perhaps they’ll just go away. Of course, then there’s our exceeding our debt limits too so that could be a problem.

    You know, I think Obama just may be the first politician to deliver on his campaign promise of change. We certainly got that in….(oh I should stop. I might be seen as a racist. Surely I wouldn’t want that).

    Here’s the link defining the Middle Ages. See if you see any other similarities.

    • Right of the People says:

      According to Wikipedia Rome was sacked by the Visigoths, I could of swore it was the Vegans. Or maybe that’s the sacking of Washington.

      Like they, a couple hundred billion here, a couple hundred billion there and pretty soon we’re talking real money.

      Time to visit with Jimmy Beam and Jack Daniels.

  3. beautyofreason says:

    Considering the cost of regulation and additional penalties over health care coverage /the environment on business, the total expense is likely far more to the individual. Costs to businesses will lead to an increase in the price of products and services to the consumer.

    I guess we can expect a high level of unemployment for a while.
    Maybe the voters will get a clue by 2012.

  4. Reality Bytes says:

    Cheney & Cheney in ’12!

  5. proreason says:

    If they say $1,761 per family, multiply it by 5 within 5 years.

    Multiply it by 10 within 20 years.

    Lookup the precedents if you don’t believe me.

    • Colonel1961 says:

      Yes, yes, it’s a few dollars – but it’s a small price to save our planet. Remember, it’s the only one we have!

      (Excuse me, I’ll be right back – I’m a little nauseous.)

      Whew! Better…

  6. DGA says:

    I would think that the $1761 amount is a first hand amount, the White house will not add the secondary costs in there like the cost to businesses that have to be then passed on to the consumer. I’m betting at least double that amount for starters.
    We are deeply concerned about the healthscare obama is jamming down our throats, I believe this crap and tax garbage will far, far outstrip that POS by a long shot. I guess that the crap and tax will make us so miserable that we won’t mind as much not being able to live past the age 60 because obama won’t cover our health needs because we aren’t taxpayers anymore. They will never have to live in the miserable world they are setting up for us.

    • proreason says:

      I think it’s a tie.

      Either one will drive the country into ruin.



    • TwilightZoned says:

      Jeez, I couldn’t agree more with both of you. And what do you want to bet we can add in “the poor” receiving a stipend to cover their share. Screwed again.

    • Colonel1961 says:

      Exactly right, TZ – another massive transfer of wealth. ‘Poor’ people will receive a check to purchase their papal indulgences, i.e., buy a bigger HDTV. The rest of us will merely pay.

      Or rebel…

  7. Yarddog1 says:

    “The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.” —Marcus Tullius Cicero

  8. BillK says:

    Oh but there’s no price that can be put on a healthy Earth, right?


  9. canary says:

    Question, Did Obama keep this figure from Congress and Senate, or did Congress and Senate keep this from Americans.

  10. Chuckk says:

    Given the history and accuracy of past government projections, the true cost will probably be $3500. per person, if not more.

  11. canary says:

    consumer affairs says tires will go up 30% in price.

  12. VMAN says:

    NEWS FLASH: Obama signs “Cap and Trade” bill and Universal health care reform. Obama’s speech to the nation: “Because of revised figures on both the energy bill and health care reform these programs are going to cost the American public four times as much as we first calculated. As a result we will be raising taxes to 90% on the lowest income Americans and the tax rate for those making over twenty thousand dollars a year will be 100%. Suckers!!!!!”

    • Liberals Demise says:

      Here is the easy answer to all here ………
      Pull a Capital Hill on the “Wallet Warriors”.

      If it worked for Tim and Charley and ………….
      ……… don’t pay your taxes!
      I mean, what in the HELL can they do? Put us ALL in jail?
      Enough is Enough!!

    • canary says:

      Liberals Demise/ our strength is in numbers

    • Liberals Demise says:

      10-4 canary!

  13. canary says:

    A few monthes ago Obama said it cost as much as postage stamp a day. He said 40 cents a day. And that was after April when covered up the truth. I just want to know if our Representitives knew when the amount released back in March 2009.???

  14. Confucius says:

    Can’t I just plant at tree?

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