Friday, September 18, 2009

Cap-and-Trade's Cost to Americans: $1,761 per Household

"The Obama administration has concluded privately that a cap-and-trade law would cost every American household $1,761 a year — or a national total of nearly $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.

The previously unreleased Treasury Department analysis, which CBS News reported this week, says the new law would require new taxes between $100 billion to $200 billion a year. That's how Treasury analysts arrived at the $1,761 per household figure.

"Given the administration's proposal to auction all emission allowances, a cap-and-trade program could generate federal receipts on the order of $100 to $200 billion annually," according to the document, which was written by Judson Jaffe, who joined the Treasury Department's Office of Environment and Energy in January.

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 percent or 8 percent increase a year.

That finding has been echoed by other internal Obama administration documents on the subject."

For the rest of the story click below.

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