WSJ.com - We Don't Need a Climate Tax on the Poor

WSJ.com - Opinion: We Don't Need a Climate Tax on the Poor*

 

The Senate is debating a global warming bill that will create the largest expansion of the federal government since FDR's New Deal, complete with a brand new, unelected bureaucracy. The Lieberman-Warner bill (America's Climate Security Act) represents the largest tax increase in U.S. history and the biggest pork bill ever contemplated with trillions of dollars in giveaways. Well-heeled lobbyists are already plotting how to divide up the federal largesse. The handouts offered by the sponsors of this bill come straight from the pockets of families and workers in the form of lost jobs, higher gas, power and heating bills, and more expensive consumer goods.

The Congressional Budget Office (CBO) says Lieberman-Warner would effectively raise taxes on Americans by more than $1 trillion over the next 10 years.

A recent CBO report found: "Most of the cost of meeting a cap on CO2 emissions would be borne by consumers, who would face persistently higher prices for products such as electricity and gasoline. Those price increases would be regressive in that poorer households would bear a larger burden relative to their income than wealthier households."

According to the Environmental Protection Agency's own analysis, by 2050 Lieberman-Warner would only lower global CO2 concentrations by less than 1.4% without additional international action. In fact, this bill, often touted as an "insurance policy" against global warming, is instead all economic pain for no climate gain.