New “Energy Bill” a 50% Tax Increase on Middle America

According to Martin Feldstein, the Energy Reform Act that has passed in Congress (but not in the Senate) represents the equivalent of a 50% tax increase to the average American Family.

The Congressional Budget office predicts that passage of this bill will dramatically increase the cost of living for all Americans, by an average of $1,600 per year. Since the average family of four, with earnings of $50,000 per year, now pays approximately $3,000 in taxes, this represents a hidden tax increase of 50%.

Next on the agenda is a new health care tax, again under the guise of "reform." This will help create a new government health care bureacracy and greater taxes.If our president and Congress want to raise taxes and costs, that is their right as our duly elected leaders. However, they should do this in plain sight, not by hiding behind "change."

I am saddened that the mainstream media has done nothing to bring this information to light. This president campaigned on raising taxes only on the "wealthy," as defined as those making more than $250,000 per year. So far, we have seen tax after hidden tax, primarily on the little guy. These new energy taxes will affect all Americans, particularly those living on fixed and moderate incomes. I repeat, these taxes and cost increases do not hurt the wealthy anywhere near as much as they hurt the rest of us. Where is the outrage?

I encourage you to follow the attached hyperlink to Feldstein’s article discussing this. In case you don’t know, Mr. Feldstein’s qualifications, I have copied a brief excerpt from his website. He is a Harvard professor who has advised several presidents on economic policy. He is a member of Mr. Obama’s Economic Recovery Advisory Board.


http://www.nber.org/feldstein/WELL.Feldstein.pdf

Short Bio:
Martin Feldstein is the George F. Baker Professor of Economics at Harvard University and President Emeritus of the National Bureau of Economic Research. He served as President and CEO of the NBER from 1977-82 and 1984-2008. He continues as a Research Associate of the NBER. The NBER is a private, nonprofit research organization that has specialized for more than 80 years in producing nonpartisan studies of the American economy.

From 1982 through 1984, Martin Feldstein was Chairman of the Council of Economic Advisers and President Reagan's chief economic adviser. He served as President of the American Economic Association in 2004. In 2006, President Bush appointed him to be a member of the President's Foreign Intelligence Advisory Board. In 2009, President Obama appointed him to be a member of the President's Economic Recovery Advisory Board.

Obama Cap-and-Trade: A Tax We Can’t Afford

The Obama administration is backing a bill going through Congress (Waxman-Markey) that would cap U.S. Co2 emissions at 83% of 2005 levels by the year 2020.

While this is an idea that sounds good to the politician, it is a policy move that will severely tax the American people, it will cost American jobs and it will do little to reduce global carbon emissions.

The U.S. Congressional Budget Office has estimated that it will cost the average American household $1,600 per year to reduce CO2 emissions by 15%. American families are struggling as it is. It will increase the prices of American-made goods, causing us to lose more jobs. It will shift production overseas to countries (like China) that have no restrictions on CO2 emissions. It may even increase overall global Co2 emissions, the opposite of its intent.

At this time, U.S. carbon emissions represent about 25% of global emissions. A 15% reduction represents about a 4% drop in world CO2 emissions, assuming the products are still made in this country. However, the tax (yes, it is a tax) would cause more overseas production, in areas that pollute many times more than we do for the same output. The net result will be a lower U.S. wage base, more unemployment and no less global pollution.

In reality, this bill represents little more than a power grab by Washington, giving politicians the ability to trade CO2 credits for votes. Nothing more.