Obama admin: Cap-and-trade will cost families $1761 per year

posted at 2:20 pm on September 16, 2009 by Ed Morrissey

Supporters of the administration’s plans for cap-and-trade have argued that the costs would be minimal for American households, as low as $175 per household per year, as the White House proclaimed an incomplete analysis from the CBO.  A new study shows that the actual costs per household are ten times that number, almost $150 per month, once cap-and-trade gets implemented.  What right-wing organization created that analysis?

The Treasury Department:

The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.

A previously unreleased analysis prepared by the U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year. At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.

A second memorandum, which was prepared for Obama’s transition team after the November election, says this about climate change policies: “Economic costs will likely be on the order of 1 percent of GDP, making them equal in scale to all existing environmental regulation.”

The documents (PDF) were obtained under the Freedom of Information Act by the free-market Competitive Enterprise Institute and released on Tuesday.

The Obama administration used arguments that they knew weren’t accurate in order to push this legislation through the House.  Obama himself made these arguments, while analysts in the government had already shown them to be false.  In other words, Obama lied, and so did his administration and allies in Congress.

And they didn’t just lie on the costs to American households for energy-production disincentives.  The total cost to the economy would be 1% of GDP, or about the same amount the economy contracted in the second quarter of this year, extended for the foreseeable future.  That amounts, in 2009, to $120 billion dollars taken right off the top of the American economy, with the loss of jobs and productivity that entails.

This isn’t a plan for growth through a “green economy.”  It’s a recipe for economic disaster, misery, high unemployment, backbreaking taxes, and further government dependency.  It’s actually worse than the Heritage Foundation predicted in its own analysis.  No wonder Obama and his administration has lied about it and kept the analyses hidden.


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I’m ready to fork over my $1,761.

Yeah, right.

FlameWarrior on September 16, 2009 at 2:22 PM

When the gov says 1761, that means within 5 years it will be 5 times that, and within 10 years it will be 10 times that.

notagool on September 16, 2009 at 2:22 PM

Already cut more than that out of the carbon footprint. No, thank you.

Christien on September 16, 2009 at 2:22 PM

Consider it a tithe.

Vashta.Nerada on September 16, 2009 at 2:23 PM

$1761 is nothing if it means saving the environment.
– AfroLib
– 343
– Blew Boy (both of them)

angryed on September 16, 2009 at 2:23 PM

Is that like a negative rebate check?

misslizzi on September 16, 2009 at 2:24 PM

Lets all admit it. We are the working poor… for the Man One.

upinak on September 16, 2009 at 2:24 PM

Facts sure are racist, aren’t they?

BadgerHawk on September 16, 2009 at 2:24 PM

So does this mean the Timothy Geithner is a racist?

rbj on September 16, 2009 at 2:25 PM

I bet we don’t see this discussed on Obama’s Sunday talk shows or on Monday’s Letterman.

NickelAndDime on September 16, 2009 at 2:25 PM

The One will not be happy until he robs us all blind. As long as we have money in our pockets he will try to find a way to take it and use it for the public good.

Where are the best places, outside the US, to retire? I need to start planning.

bopbottle on September 16, 2009 at 2:25 PM

I thought O said he wasn’t going to raise taxes on 95% of Americans “not one dime?” That’s a lot of dimes. Do I get censured if I say “You lie?”

Beaglemom on September 16, 2009 at 2:25 PM

If this was prepared after the election – In November – this means Obama and his cronies were bald-faced lying to us every time they said $170 a year or whatever it was.

How can anyone support these people?

lorien1973 on September 16, 2009 at 2:25 PM

YOU LIE!
——-
keep playing up that fuzzy math dear leader….

cmsinaz on September 16, 2009 at 2:25 PM

hey jimmah, do ya think the treasury department is filled with racist barak-haters?

jbh45 on September 16, 2009 at 2:25 PM

Worse, and far more dangerous than the actual cost to Americans of Crap&Trade, is its insane restrictions on growth. This is the real problem, and it is more dangerous than anyone can imagine.

progressoverpeace on September 16, 2009 at 2:25 PM

The Prevaricator-in-Chief gets called-out again.

ICBM on September 16, 2009 at 2:26 PM

anyone from Virginia reading this, remember that this is just the $ amount to the family. this is after the coal industry is destroyed (and Boucher voted for this) & after agriculture is destroyed, except for corn (and Perriello voted for this).

remind everyone you know that lives out in the fighting 9th district & in the heartland of the 5th district that these Congressman must be defeated.

kelley in virginia on September 16, 2009 at 2:26 PM

Gosh, that’s not too much. After all, we’re getting universal healthcare for less than a dime! (wink and a nod)

Linnea on September 16, 2009 at 2:26 PM

it’s just a litlle white lie, oh wait does that make me a racist?

SHARPTOOTH on September 16, 2009 at 2:26 PM

no worries, 95% of us won’t be impacted…and that patriotic 5% will be happy to more

DanMan on September 16, 2009 at 2:26 PM

Flush Crap-and-Turd

Christien on September 16, 2009 at 2:26 PM

It’s a recipe for economic disaster, misery, high unemployment, backbreaking taxes, and further government dependency.

Are you ready to admit Obama is destroying the economy (among other things) on purpose? That this is not about incompetence?

Daggett on September 16, 2009 at 2:27 PM

Check my math…

Baccus says if you don’t buy insurance you owe the government $3800.00 in fines.

Cap and trade is gonna add $1761.00 to household expenditures…

So for a two-adult family that’s $3800 + $3800 + $1761 = $9361 each year til Repeal.

Well I’m sure we all got that much fat in our budget.

Chris_Balsz on September 16, 2009 at 2:27 PM

If I am reading this correctly, it appears that the Obama Administration covered up a damaging analysis from its own people and instead proclaimed a number that was a 10th of the cost. I wonder if there is an internal analysis of Healthcare Reform that no one has seen showing it to actually cost 10 times what the CBO has estimated.

Conservative in NOVA on September 16, 2009 at 2:27 PM

ugh…just ugh

becki51758 on September 16, 2009 at 2:28 PM

How can anyone support these people?

lorien1973 on September 16, 2009 at 2:25 PM

question of the day

cmsinaz on September 16, 2009 at 2:28 PM

I actually think he is trying to destroy everything in order to rebuild it. I hate saying this because I never believed any of the grand conspiracies out there but this is getting weird. What president wants to burden the average family with this much additional costs unless they have a more far reaching goal in mind.

Howcome on September 16, 2009 at 2:28 PM

Let’s see….

$13,900 ObamaCare
$1,750 Cap & Trade

Per family

Declining dollar, inflation,…Welcome Back KotterCarter

PatriotRider on September 16, 2009 at 2:29 PM

How are they arriving at the 1761 number? How do they define household? Is it same as CBO definition? Does it change based on household size, or house size, acreage? heating fuel source? cars per household?

WashingtonsWake on September 16, 2009 at 2:29 PM

From Ed’s commentary: The total cost to the economy would be 1% of GDP, or about the same amount the economy contracted in the second quarter of this year, extended for the foreseeable future.

Translation: Cap and Trade = Permanent Recession

And Obama seriously can’t understand why this Haufenmist is meeting resistance in the Senate? Hello?

jwolf on September 16, 2009 at 2:30 PM

Howcome on September 16, 2009 at 2:28 PM

Makes you think, huh?

It is amazing what the facts can tell us about what the government is trying to do.

truetexan on September 16, 2009 at 2:31 PM

This is assuming that the damage to the economy doesn’t cost you your job. The real world cost to those 20% of us who get laid-off will be $50-100k per year…

SPCOlympics on September 16, 2009 at 2:31 PM

This isn’t a plan for growth through a “green economy.” It’s a recipe for economic disaster, misery, high unemployment, backbreaking taxes, and further government dependency.

That last part explains most of the things this administration does.

forest on September 16, 2009 at 2:31 PM

The Treasury Department: Charged with a hate crime and racism.

right2bright on September 16, 2009 at 2:31 PM

The Obama administration has privately concluded

Most transparent administration evah.

ICBM on September 16, 2009 at 2:32 PM

If I’m forced to pay an extra $1,700+ a year in energy taxes in order to ‘save the environment’, I swear to God that I’ll burn a tire in my backyard every day for the rest of my life. I’ll invent ways to pollute the environment that’ll make China blush…

joejm65 on September 16, 2009 at 2:33 PM

All together now …

YOU LIE!!!

darwin on September 16, 2009 at 2:33 PM

And that my friends is why it got passed in the middle of the night with not a single person reading it.

jukin on September 16, 2009 at 2:33 PM

Heh, we need to send Giles under the covers with Al Gore to get the red meat.

izoneguy on September 16, 2009 at 2:33 PM

People we all must understand that Obama and the liberals just what to help us.After all we hayseeds just don,t have enough brains to know a good thing when we see it.Also all of us are reality racists at heart and if we are going to be cured we must submit to the wisdom of the ONE.

thmcbb on September 16, 2009 at 2:34 PM

izoneguy on September 16, 2009 at 2:33 PM

Hasn’t Hannah done enough for her country already?

truetexan on September 16, 2009 at 2:34 PM

Ok I get the part where man has sinned and the seas will boil.

What’s their take on the after life?

Specifically, how many virgins do I get?

jhffmn on September 16, 2009 at 2:34 PM

The total cost to the economy would be 1% of GDP

That doesn’t address the half of it. You are forgetting the “Cap” part. Not only does Crap&Trade slow the economy, but it places a “cap” on absolute growth. This is the most dangerous aspect of it.

Crap&Trade is an attempt to force stagnation on our economy and our society – instead of “climate change”, Crap&Trade is designed to fight “economic change”.

People have to realize that, worse than being statists, the left and all collectivists are STATICISTS. They only live in the unchanging, static worlds of their pea-brains – static worlds that are easily managed by central committees that never have to worry about change and adaptation.

progressoverpeace on September 16, 2009 at 2:34 PM

Mr. President, have you no shame? Sir, have you no shame?

NeighborhoodCatLady on September 16, 2009 at 2:35 PM

U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year.

Women and Minorities will be hardest-hit. Obviously, Cap and Tax is racially motivated.

Fishoutofwater on September 16, 2009 at 2:35 PM

The lyin’ Hawaiian strikes again.

Ted Torgerson on September 16, 2009 at 2:35 PM

So is that in addition to the fees I’ll pay for driving a fossil-fuel exclusive car? Having heating and air conditioning in my home? Buying cigars, top-shelf booze, or any other amenities that make life worth living?

Spc Steve on September 16, 2009 at 2:35 PM

If I’m forced to pay an extra $1,700+ a year in energy taxes in order to ’save the environment’, I swear to God that I’ll burn a tire in my backyard every day for the rest of my life. I’ll invent ways to pollute the environment that’ll make China blush…

joejm65 on September 16, 2009 at 2:33 PM

And that my friend is how our blue brothers up north will have to heat their fannies in the winter time. You know if this goes through – the utility companies will be jacking around…sorry we don’t have any carbon credits left to turn the power back on….

izoneguy on September 16, 2009 at 2:35 PM

Wait, can’t we just create another entitlement program to help folks like me who can’t afford another $150 a month bill?
I’m only half kidding.

scalleywag on September 16, 2009 at 2:36 PM

Ed is clearly a contracter.

MB4 on September 16, 2009 at 2:36 PM

Isn’t this small amount worth having our children grow up in a healthy country?…where our children will be free to enjoy the outdoors, an outdoor that is not polluted.
It takes a sacrifice to live in a world that is clean, responsibility to lead the way to a cleaner planet.
Now lets all join hands and remember, He was chosen to bring hope and change…isn’t it worth a few dollars a day to save our planet?
Please join hands and sing with me….

right2bright on September 16, 2009 at 2:36 PM

izoneguy on September 16, 2009 at 2:33 PM

Hasn’t Hannah done enough for her country already?

truetexan on September 16, 2009 at 2:34 PM

Yes she has!! – And I think this young lady has a bright & busy future ahead….

izoneguy on September 16, 2009 at 2:37 PM

thankfully, i fly a broom.

kelley in virginia on September 16, 2009 at 2:37 PM

If I had a child who lies like this I would seriously consider some form of psycological intervention. It is pathological and very dangerous.
IMPEACH HIM NOW!!!!!

milwife88 on September 16, 2009 at 2:38 PM

Wait – isn’t that closer to the number that Heritage was using, and a lot bigger than the number the Dems were throwing around earlier this year?

hawksruleva on September 16, 2009 at 2:38 PM

So is that in addition to the fees I’ll pay for driving a fossil-fuel exclusive car? Having heating and air conditioning in my home? Buying cigars, top-shelf booze, or any other amenities that make life worth living?

Spc Steve on September 16, 2009 at 2:35 PM

And the moral of the story is: the less there is for you, the more there is for them.

Cheshire Cat on September 16, 2009 at 2:38 PM

How can anyone support these people?

lorien1973 on September 16, 2009 at 2:25 PM

“Hare Krishna…Hare Krishna”

“Hey Jim, got any more grape? We’re out of Wild Berry over here!”

“And when the comet reaches it’s closest point, the spaceship we’ll take to our new planet will reveal itself….quick…put the new Reeboks on!”

Explanation may not be possible.

BobMbx on September 16, 2009 at 2:38 PM

“Economic costs will likely be on the order of 1 percent of GDP

NYT headlines: Obama Increases GDP to 101%

right2bright on September 16, 2009 at 2:39 PM

Didn’t we have a thread a few weeks back on “correction factors?” I thought we did..

On this one, since the Cap n’ Trade prediction was 10x what the White House estimated, let’s shorten the president’s and congress terms by that same factor and call it even.

ted c on September 16, 2009 at 2:39 PM

Add to this our new taxes in NC and our already struggling family budget. We *had* a dream of me staying home with the kids, but, nickle and diming us when we’re already strapped does not help. Makes one think that helping the American middle class isn’t really their objective at all…hmmmmm.

Diane on September 16, 2009 at 2:39 PM

hey jimmah, do ya think the treasury department is filled with racist barak-haters?

jbh45 on September 16, 2009 at 2:25 PM

Nope… he’ll tell you it’s fill with Joooooos

CC

CapedConservative on September 16, 2009 at 2:39 PM

Math is racist.

LibertyBoyNYC on September 16, 2009 at 2:40 PM

Too bad Van Jones wasn’t around to reply to this.

hawksruleva on September 16, 2009 at 2:40 PM

I have news for them. You can’t get blood out of a turnip. There is nothing left. Nothing. Cap and tax is a permanent recession.

These people are morons.

ORconservative on September 16, 2009 at 2:40 PM

Redistribution of wealth from citizens to rich corporations.

Johan Klaus on September 16, 2009 at 2:40 PM

when do we get to burn congress to save the environment?

UNREPENTANT CONSERVATIVE CAPITOLIST on September 16, 2009 at 2:40 PM

Makes me sick.

balkanmom2 on September 16, 2009 at 2:41 PM

For perspective, backtrack to TARP and what that’s costing each American family, and include STIMULUS, and (dare I type it?) ObamaCare however it manifests itself via Progressive vote.

Now put the Cap/Trade $1761 cherry on, toppling household incomes at the very moment that unemployment raises its ugly reality, wages stagnate or effectively fall given deeper cuts to pay for this/that federal mandate, the value of the dollar falls, inflation prepares to knock us out, AND UTILITY BILLS AND FUELS SKYROCKET.

To keep it in context, powerful and wealthy people get out of paying taxes while they prepare legislation to prevent the IRS from ever granting mere citizens any leniency, doubling fees, and empowering the IRS to evade clarifying new tax laws prior to deadlines, denying information to all taxpayers in advance, legislating “gotcha” tax law.

maverick muse on September 16, 2009 at 2:41 PM

Only 2 ways this can be paid for, either

a. We borrow a few more $trillions from China; or
b. (surprise!) Let’s make the “rich” pay for it

alwyr on September 16, 2009 at 2:42 PM

But we get so very much from Cap and Tax….

JIMV on September 16, 2009 at 2:42 PM

An extra $1800 a year to save the effing planet?

How’s that going to wash with the 10-20% unemployed (depending on what numbers to believe).

How about with those employed but below the poverty level?

Or those families making under, say, $60K a year?

Now, multiply that number by about 6, the government estimating margin of error, which equals about $10,000 a year.

Who will be left to vote for these geniuses?

TXUS on September 16, 2009 at 2:42 PM

Yes she has!! – And I think this young lady has a bright & busy future ahead….

izoneguy on September 16, 2009 at 2:37 PM

:)

truetexan on September 16, 2009 at 2:44 PM

As my GPS often says …….. “Recalculating”

fogw on September 16, 2009 at 2:44 PM

Who will be left to vote for these geniuses?

TXUS on September 16, 2009 at 2:42 PM

The unemployed…uneducated…

right2bright on September 16, 2009 at 2:44 PM

Now would be a good time to remind people about the handful of Republicans who voted in favor of this disaster. The Cap & Tax Seven, I believe they are called?

My rep, Mary Bono Mack, is one of them. And I hope she is defeated in the Republican primary.

BardMan on September 16, 2009 at 2:45 PM

Sierra Club is doing campus protests (today, they’re at Va. Tech) demanding that universities get off of coal.

Last week, Virginia universities found out that they were losing 15% of their state funding.

Moral of the story: reality doesn’t matter to environmentalists.

hawksruleva on September 16, 2009 at 2:45 PM

Well we can guess what’s next on the list: eliminating the Freedom of Information Act so people can’t find out pesky little details like this in the future…

Rockygold on September 16, 2009 at 2:46 PM

Where are the trolls?

angryed on September 16, 2009 at 2:47 PM

Here’s the gameplan.
Take the House and Senate in 2010.
Repeal *every single* crapfest like CandT and HCRB.
Repeal the Stimulus.
Fix TARP.
Audit every single company that gets stimulus money.
Audit the background of every single Czar and force every Czar to be confirmed.

nyx on September 16, 2009 at 2:47 PM

Obama lies, America sighs.

Sharke on September 16, 2009 at 2:50 PM

Where are the trolls?

angryed on September 16, 2009 at 2:47 PM

Out looking for a third job.

derft on September 16, 2009 at 2:50 PM

Moral of the story: reality doesn’t matter to environmentalists.

hawksruleva on September 16, 2009 at 2:45 PM

And a hiring freeze is on the horizon.

scalleywag on September 16, 2009 at 2:50 PM

yay

blatantblue on September 16, 2009 at 2:50 PM

As my GPS often says …….. “Recalculating”

fogw on September 16, 2009 at 2:44 PM

LOL

cmsinaz on September 16, 2009 at 2:50 PM

Here’s the gameplan.
Take the House and Senate in 2010.
Repeal *every single* crapfest like CandT and HCRB.
Repeal the Stimulus.
Fix TARP.

Good sentiments, but The Precedent will just veto them. Nothing passed will be even open to repeal for a long time.

Audit every single company that gets stimulus money.
Audit the background of every single Czar and force every Czar to be confirmed.

nyx on September 16, 2009 at 2:47 PM

We’ll see if the GOP has the guts. Seeing how they rolled over for Sotomayor (not all, but enough of them) I am not confident.

progressoverpeace on September 16, 2009 at 2:50 PM

Redistribution of wealth from citizens to rich corporations.

Johan Klaus on September 16, 2009 at 2:40 PM

Global Warming is regarded by the sheeple as true; by those who can think for themselves as false; and by the power hungry and the money grubbers as … … useful .. … very useful in filching power and money to themselves.

MB4 on September 16, 2009 at 2:51 PM

Wait, can’t we just create another entitlement program to help folks like me who can’t afford another $150 a month bill?
I’m only half kidding.

scalleywag on September 16, 2009 at 2:36 PM

Exactly. And that, my friend, is called Redistribution of Wealth.

NickelAndDime on September 16, 2009 at 2:51 PM

And one VA University is counting on stimulus funds to make it through the year. If they don’t get them, they’re screwed.

scalleywag on September 16, 2009 at 2:51 PM

Nothing left is right. Between cap and trade and increase costs of premiums with obamacare and increased taxes and increased local taxes – I’ll have nothing left.

Blake on September 16, 2009 at 2:51 PM

Who will be left to vote for these geniuses?

TXUS on September 16, 2009 at 2:42 PM
The unemployed…uneducated…

right2bright on September 16, 2009 at 2:44 PM

Let us hope that unemployment stays low.

Johan Klaus on September 16, 2009 at 2:52 PM

Now would be a good time to remind people about the handful of Republicans who voted in favor of this disaster. The Cap & Tax Seven, I believe they are called?

Mine, too. Turncoat LoBiondo. After I called his office to voice my Constitutional right to try to influence my Congressman’s vote and asked him to vote “No,” he voted yes and then sent me a 6 page letter explaining why he voted yes. I threw it in the trash.

Beaglemom on September 16, 2009 at 2:52 PM

…These people are morons.
ORconservative on September 16, 2009 at 2:40 PM

Not exactly, ORcon. These people think WE are MORONS.

And they will be proven correct if we allow this to come to be.

marybel on September 16, 2009 at 2:52 PM

$1,761

Consider it an End of Life incentive.

Mr_Magoo on September 16, 2009 at 2:52 PM

joejm65 on September 16, 2009 at 2:33 PM

LOL! I live on a farm so I sort everything recyclable out of the trash and burn the rest. Looks like I’ll be burning a lot of plastics if crap n trade passes! Hell, I’ll do like my grandma used to and burn aerosol cans-when we were kids we’d light her trash and run for our lives so we wouldn’t get hit by Aqua Net shrapnel. Thanks for the giggle!

Cornhusker on September 16, 2009 at 2:53 PM

Employment is racist.

LibertyBoyNYC on September 16, 2009 at 2:53 PM

It’s a recipe for economic disaster, misery, high unemployment, backbreaking taxes, and further government dependency.

I believe that the Obama administration and other DC Democrats see that last part as a feature, not a bug.

Physics Geek on September 16, 2009 at 2:54 PM

An extra $1800 a year to save the effing planet?

How’s that going to wash with the 10-20% unemployed (depending on what numbers to believe).

How about with those employed but below the poverty level?

Or those families making under, say, $60K a year?

Now, multiply that number by about 6, the government estimating margin of error, which equals about $10,000 a year.

Who will be left to vote for these geniuses?

TXUS on September 16, 2009 at 2:42 PM

Silly, silly.

You forget that we humans do not matter in this. The animals are the original inhabitors of this planet. They deserve to have what was taken from them returned.

If Cass Sustein thinks animals should have the right to sue in court, it is only natural that a right to vote will be next.

Silly, silly hard working human. Don’t you know that you are now the beast of burden for the planet’s environmental needs?

Economy schmonomy. It’s about time we paid reparations to Bambi for burning her forest down and for those evil hunters shooting her mother.

(Isn’t it sad to think that there are people out there who truly believe that crap?)

MississippiMom on September 16, 2009 at 2:55 PM

I’ll have nothing left.

Blake on September 16, 2009 at 2:51 PM

That is the general idea.

MB4 on September 16, 2009 at 2:55 PM

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