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Cap and Trade, will eat tax savings!

hypocritexposer

Well-known member
Our calculations suggest that consumption under the constraints posed by Lieberman-
Warner's cap-and-trade regime is equivalent to a constant (in percentage terms) con-sumption decrease of around 0.8%-1% each year, starting today and continuing to 2050. At first glance, a consumption decrease of one percent may appear trivial. However, as the 1% per year decreases compound, the welfare losses are substantial in the aggregate. ...

We find that a mitigation path consistent with Lieberman-Warner's provisions is equivalent to a permanent tax increase for the average American household. This increase is projected to amount to an additional $1100 in taxes in 2008. Moreover, this cap-and-trade "tax" increases over time in real terms from about $1400 to $2000 during 2015-2030 and approximately $2000 to $3000 in 2030-2050. The de facto tax increase becomes quite significant when one considers the average American household spends about $2500 on food annually....

Cap-and-trade will burden households with higher gasoline prices. Table 8 shows the percent difference between the baseline gasoline price and the cap-and-trade adjusted price. All models and scenarios demonstrate that Lieberman-Warner will increase the price of gasoline above the reference scenario price but with large amounts of variation. The CRA predicts that gas prices rise 145% above the reference scenario in 2015. ...

The assumptions driving the price of carbon allowances also affect employment. A higher predicted carbon allowance price gives producers a tighter margin and they are forced to shed jobs to maintain profit levels. The estimates of job losses range from hundreds of thousands to millions.

http://www.marshall.org/article.php?id=636
 
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