A Cap and Trade Analysis

Heritage Analysis of Waxman-Markey Hits Where Others Miss contains a disturbing analysis of the effects of what is known as the Cap and Trade bill. The highlights:

In particular, the Heritage analysis projects that by 2035 the economic impacts (in constant 2009 dollars) of this bill are[1]:

•Gasoline prices will rise 58 percent (or $1.38);
•Natural gas prices will rise 55 percent;
•Heating oil prices will rise 56 percent;
•Electricity prices will rise 90 percent;
•A family of four can expect its per-year energy costs to rise by $1,241;
•Including taxes, a family of four will pay an additional $4,609 per year;
•A family of four will reduce its consumption of goods and services by up to $3,000 per year, as its income and savings fall;
•Aggregate GDP losses will be $9.4 trillion;
•Aggregate cap-and-trade energy taxes will be $5.7 trillion;
•Job losses will be nearly 2.5 million; and
•The national debt will rise an additional $12,803 per person ($51,212 per family of four).

(All of these price and cost increases are above and beyond those expected to occur without the legislation.)