Cost of Cap and Tax
May 13th, 2009 by Legislative StaffThe Heritage Foundation is out today with a new analysis of the Democrats’ Cap and Tax proposal which would institute a national energy tax and kill jobs. According to the analysis, the bill would:
- Reduce aggregate gross domestic product (GDP) by $7.4 trillion,
- Destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs,
- Raise electricity rates 90 percent after adjusting for inflation,
- Raise inflation-adjusted gasoline prices by 74 percent,
- Raise residential natural gas prices by 55 percent,
- Raise an average family’s annual energy bill by $1,500, and
- Increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation.
To read the full analysis, click here.