By Institute for Energy Research ——Bio and Archives--February 11, 2017
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Carbon tax bad for Americans
One of the unsung marvels of modern life is the availability of affordable and reliable energy. It’s how we fuel our cars, keep the lights on and maintain the perfect temperature in our homes regardless of the season. For most Americans, the energy we use is an afterthought, but a tax proposal being floated in Washington would change all that. This week, a small group of out-of-touch Republicans pitched the Trump administration on what they call a “free-market” carbon tax. However, there is nothing free-market about a punishing new tax that would saddle Americans with higher energy costs. Their plan calls for a $40-per-ton carbon tax that would fall mainly on the use of natural gas, oil and coal, which make up 80% of the energy Americans use. Levying a massive tax on the use of these sources would burden American families with higher energy costs, including an estimated 36-cent-per-gallon hike in gasoline prices alone. It would also force Americans to pay more for their groceries and other household goods because energy costs are embedded in every aspect of the economy.
The authors of this carbon tax plan assure us that the $300 billion in new annual revenue would be refunded back to the people in the form of rebate checks. However, this promise is unrealistic, if not downright impossible. Where Americans see a devastating new tax, Washington lawmakers see a new stream of revenue to increase government spending. It is naive to expect lawmakers to suddenly change their out-of-control spending habits. The plan also calls on President Trump to scrap existing carbon regulations. But that deal is unnecessary, as the president has already promised to undo those regulations. American families depend on affordable, reliable energy to power their lives. This plan would drive up the cost of that energy, while putting more money at the disposal of politicians in Washington. The plan is not free-market at all, but another example of government nibbling away at the hard-earned incomes of Americans.Click here to view the article online.
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The Institute for Energy Research (IER) is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets. IER maintains that freely-functioning energy markets provide the most efficient and effective solutions to today’s global energy and environmental challenges and, as such, are critical to the well-being of individuals and society.