The first, and most obvious, lie regarding cap and trade legislation is the cost.
It may be that, genuinely, no one really knows what the full cost of cape and trade will be. But we have projectsions. Both from the government and from research groups and other media outlets and the disparity is so great that SOMEONE somewhere is not telling the truth.
Let’s look at what politicians are projecting now for costs of cap and trade when it goes into effect in 2012.
Democrat supporters estimate the bill will cost families an additional $175/year by 2020 (source). That comes to roughly 48-cents a day or $14.59 a month. They say it is “roughly the cost of a postage stamp a day.”
The Heritage Foundation comes up with dramatically different numbers. From Associated Content:
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.
The Heritage Foundation projects that in 2020, cap and trade will cost a family of four an additional $1,870 per year. That’s $155.84 per month. And in 2035, that expense goes up to $6,800 for a family of four. That’s $566.67 per month. Can you be assured you’ll have a job in 2035 that pays you an extra $566.67 per month?
And where do these expenses come from? The increased cost of everything from food, clothing and other basic necessities to the increased cost of lighting/heating/cooling your home. How do those numbers break down?
- Electricity cost increases: 44 to 129%
- Gasoline price increases: 61 cents to $2.53 per gallon
- Natural gas price increases: 104 to 146%
Let’s put that into some tangible, personal numbers.
Say your monthly electric bill is $200 today. With cap and trade, that bill will go up anywhere from $88 to $258 dollars PER MONTH. (How I got this figure: $200 x .44 = 88 or $200 x 1.29 = 258). Right now, we have a budget plan through our electric company. We pay $53/month for our electricity. Under cap and trade, our cost would go up to $76.32 (44% increase) to $131.97 (129%).
Currently, where I live, gas is $2.62/gallon. It costs us roughly $31.00 to fill up the 12 gallon tank on our car. We get roughly 330 miles to the tank with proper maintenance. Under cap and trade, our gas costs would go up to $3.23/gallon (or $38.76 for a tank) to $5.15/gallon (or $61.80 for a tank).
We pay our electricity and natural gas in a combined bill. Currently, in the summer, our natural gas usage is minimal because we use it for our dryer and not heating our home. In the past month, we used $15.62 worth of natural gas. Under cap and trade, that cost would go up to $31.87 (104% increase) up to $32.70 (146% increase). Extrapolate that out to the winter months, where we have to heat our apartment from November through March, and imagine the costs. Say our portion of heat in the winter is $100 (in addition to the costs for electricity), cap and trade would drive that up to $204/month or $246/month. If you add this to the increased costs of our electric bill, we go from paying roughly $86/month for energy and gas to anywhere between $250-300/month.
Let me ask you a question: in the next 3-20 years, do you anticipate your employer will be giving you a pay increase of 44-146%?
I didn’t think so.
And if you needed any more proof that the impetus behind cap and trade is going to be significantly more costly than a “postage stamp a day”, you need look no further than the words our very own president, Barack Obama, said in January 2008:
“Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.”
Remember those words.
Especially when you remember that Barack Obama vowed not to raise any taxes for any family making less than $250,000/year. Last time I checked, even the poorest families still needed to buy food and clothing, light/heat/cool their homes, and purchase gas to get to/from work.
This tax applies to them, too.