The Wall Street Journal hit the mark today in its editorial on the Democrats' cap and trade bill which is expected to be considered for a vote tomorrow or Saturday (the vote depends on whether Speaker Pelosi can hold together a fragile coalition of liberal Democrats and moderates in her party). The editorial "Cap and Tax Fiction" does a great job in explaining how much this national energy tax will actually cost by cutting through the smoke and mirrors of the Democrats' rhetoric and fudged numbers. Here is a quick sample from the piece:
"The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill's restrictions kick in, that number rises to $6,800 for a family of four by 2035."
Read the entire editorial here.