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Todd Hollenbeck

How Cap and Tax Will Hurt Rhode Island


Posted by Todd Hollenbeck on Thursday, October 8th, 2009, 9:33 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Rhode Island. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
Rhode Island:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Rhode Island will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $538,980,000.
  • Total Personal Income Loss of $730,630,000.
  • Non-Farm Job losses of 5,850. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $542.71 per household.
  • Increase in Gas Prices from 2012-2035 of $0.66 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Jack Reed: (202) 224-4642
Senator Sheldon Whitehouse: (202) 224-2921

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How Cap and Tax Will Hurt Pennsylvania


Posted by Todd Hollenbeck on Wednesday, October 7th, 2009, 1:21 PM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Pennsylvania. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
Pennsylvania:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Pennsylvania will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $6,104,440,000.
  • Total Personal Income Loss of $8,555,020,000.
  • Non-Farm Job losses of 67,239. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $608.01 per household.
  • Increase in Gas Prices from 2012-2035 of $0.66 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Robert P. Casey, Jr.: (202) 224-6324
Senator Arlen Specter: (202) 224-4254

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Sacrificing Jobs on the Altar of "Green"


Posted by Todd Hollenbeck on Tuesday, October 6th, 2009, 2:41 PM PERMALINK


Support for a cap and trade national energy tax is dwindling and supporters have been throwing everything they can at the debate to see what will stick. You would think that saving the planet would be a sufficient sales pitch to justify destroying the economy, but most people aren’t buying that argument. In order to sell the American people on this dangerous legislation, some supporters are playing up the national security angle. The official name for the Waxman-Markey cap and trade bill that narrowly passed the House is, “American Clean Energy and Security Act of 2009.” The argument that hypothetical global warming is a national security threat is weak at best. The senate has decided to go for the “jobs” angle with their version. 

The Boxer-Kerry cap and trade bill, sorry “Pollution Reduction and Investment” bill (wouldn’t want to confuse Senator Kerry with all that “cap and trade” talk), is called the "Clean Energy Jobs and American Power Act." Senator Kerry is also trying to use the national security argument for his bill as well since he is the chairman of the Foreign Relations Committee, but “green jobs” are the main talking point of this bill. President Obama said, "Make no mistake: this is a jobs bill…It will make possible the creation of millions of new jobs" referring to the Waxman-Markey bill last June. 

Unfortunately, just as the “Stimulus” bill caused more job losses than the White House predicted would be lost if they had not meddled at all, so too would subsidizing “green jobs” cost far more jobs than it would create. Subsidizing “green jobs” has the same effect as “stimulating” other areas of the economy; it takes money from the productive areas and gives it to the costly and unproductive areas. In this case, cap and trade energy taxes would cause productive fossil fuel energy to have increased scarcity and higher costs. To compensate for the energy lost from these sources, corporate welfare (i.e. subsidies) would be given by the government (at taxpayer expanse) to highly unproductive and costly energy sources such as wind and solar.
 
The “green jobs” that would come as a result of these new industries, are what Frederic Bastiat called “that which is seen.” These new jobs are a tangible result that politicians can point to as proof that they are creating jobs. However, this ignores the other part of Bastiat’s “Broken Window Fallacy” by ignoring “that which is unseen.” The unseen consequences come from the job losses that come from the increased taxes and energy costs, as well as jobs that were never created because resources were squandered on unproductive “green jobs.” Money confiscated by the government and given to areas of the economy they deem worthy of this corporate welfare is money that could have been spent on other, more productive, goods and services. Companies will have less money to invest and expand. This will cause layoffs or stagnation for energy companies, but also for companies that depend on cheap reliable energy to compete in the global market. Ben Liebermen, senior policy analyst in the Thomas A. Roe Institute for Economic Policy Studies at the Heritage Foundation, wrote:
“[T]he billions of dollars in government subsidies to the wind industry siphon resources and jobs away from other parts of the economy.
 Worse, the higher cost of wind-generated electricity and other alternatives kills even more jobs, especially in the manufacturing sector that needs reasonably-priced energy to compete in the global marketplace.” 
A study at the Heritage Foundation estimates a net job loss of 1,145,000 jobs from the Waxman-Markey bill. These are the losses that come even after the newly created “green jobs.” These estimates are fairly abstract, however, because future estimates are never completely accurate and it is also impossible to account for the jobs that will never exist because of this legislation. To make these results more tangible, all one has to do is look to other countries that have enacted similar legislation.
 
Spain instituted an alternative energy policy that is being used as a model for the US. Unemployment in Spain currently stands at 18%. As Liebermen writes, “Gabriel Calzada, economics professor at Madrid's King Juan Carlos University, estimates that each green job Spain creates prevents 2.2 other jobs from being created.” (Emphasis mine)
 
In Denmark, a study from the think tank CEPOS found than each wind energy job there costs the government $90,000 to $140,000 annually- much more than the jobs pay. Governments can only get money from taxing, borrowing, and printing, so every dollar spent on a “green job” is money taken from someone else, either now through taxation or inflation, or taken from our children through borrowing.
 
California has also been pursuing “green jobs” program that has been heralded by the environmentalists. The August 2009, California’s unemployment rate was 12.1% compared to the national average of 9.6%.
 
Not only do “green jobs” kill other jobs, they are unsustainable. Alternative energies can only exist in the market when they are given corporate welfare. If these jobs were productive and sustainable, they wouldn’t need handouts. As soon as the welfare ends, so do the jobs. Creating this new entitlement program does nothing but create a new group of people who are dependent on the government for the livelihood.
 
In Nancy Pelosi’s speech on the floor of the House in support for the Waxman- Markey Energy Tax, she said the bill would bring, “Jobs, jobs, jobs and jobs. Let's vote for jobs.” Her misunderstanding of economics and reality is obvious in this statement; however, this statement should be passed on to the Senate when considering the Boxer-Kerry bill. The Senate needs to “Vote for jobs” by voting against this job killing legislation, because once this entitlement is started, there is no stopping it.

Photo Credit: http://www.flickr.com/photos/aaron_c/ / CC BY-ND 2.0

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How Cap and Tax will Hurt Oregon


Posted by Todd Hollenbeck on Tuesday, October 6th, 2009, 9:58 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Oregon. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009
Oregon:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Oregon will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $1,818,440,000.
  • Total Personal Income Loss of $2,319,310,000.
  • Non-Farm Job losses of 20,765. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $525.00 per household.
  • Increase in Gas Prices from 2012-2035 of $0.67 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Jeff Merkley: (202) 224-3753
Senator Ron Wyden: (202) 224-5244

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How Cap and Tax will Hurt Oklahoma


Posted by Todd Hollenbeck on Monday, October 5th, 2009, 9:39 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Oklahoma. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
Oklahoma:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Oklahoma will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $1,601,130,000.
  • Total Personal Income Loss of $2,304,750,000.
  • Non-Farm Job losses of 18,881. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $599.60 per household.
  • Increase in Gas Prices from 2012-2035 of $0.63 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Tom Coburn: (202) 224-5754
Senator James M. Inhofe: (202) 224-4721

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ATR Energy Tax Hike Series Analysis of "Nonproducing Oil & Gas Lease Fees"


Posted by Todd Hollenbeck on Friday, October 2nd, 2009, 6:07 PM PERMALINK


Click here for a PDF of the analysis.

Click here for the full Sepember 2009 Energy Tax Analysis.

ATR Energy Tax Hike Series 

Nonproducing Oil & Gas Lease Fees
 
Current Law
There is currently no law penalizing oil companies for having nonproducing oil and gas leases.
 
Obama Proposal
The FY 2010 Administration Budget calls for $1.156 billion in added fees from 2010-2019 by taxing non-producing oil and gas leases.
 
ATR Analysis
As Representative Doug Lamborn (R-CO) told The Energy and Mineral Resources Subcommittee, “These fees will not make companies develop any faster… In fact, the fees constitute a purely punitive proposal designed for what appears to be cheap political gain.” [1]
 
The proposed $4/acre fee is estimated to cost the energy companies $122 million per year. [2]
 
It costs billions of dollars to lease federal lands to explore for domestic oil and natural gas. It can take companies years to obtain environmental permits, geologically evaluate the land, and perform exploratory drilling, before they are able to begin producing commercial supplies of oil. Even after exploration it is not unusual to spend in excess of $100 million to drill a dry hole.
 
Oil companies take on tremendous risk as they are not allowed to evaluate the viability of the land until after they obtain a lease. As Energy Tomorrow reports, even if they find oil it can take seven to ten years “for environmental and engineering studies, to acquire permits, install production facilities (or platforms for offshore leases) and build the necessary infrastructure to bring the resources to market.” [3]
 
Charging fees for nonproducing oil and gas leases will reduce domestic exploration. This will continue our dependency on foreign oil and drive up the costs of oil, natural gas, and gasoline. These penalties will increase the risk of domestic exploration to the point that companies will only explore in other countries, leaving the vast U.S. reserves unused.


[1] Committee on Natural Resources, Republican Site, “Lamborn: Proposed Taxes on “Non-Producing” Oil and Gas Leases will Harm American Energy Production.” March 17, 2009. http://republicans.resourcescommittee.house.gov/PRArticle.aspx?NewsID=1759
[2] Rocky Mountain Association of Geologists, “Non Producing Lease Definition Needed, DOI's Salazar Told.” 2009 http://www.rmag.org/public_issues/index.asp?content_id=251&content_name=251
[3] Energy Tomorrow, “Facts about Non-Producing Leases,” http://www.energytomorrow.org/Facts_about_Non_Producing_Leases.aspx

 

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How Cap and Tax Will Hurt Ohio


Posted by Todd Hollenbeck on Friday, October 2nd, 2009, 9:34 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in Ohio. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
 
Ohio:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Ohio will suffer the following losses in 2012 as a result of Cap and Tax:
  • A decline in Gross State Product of $4,062,310,000.
  • Total Personal Income Loss of  $6,941,990,000.
  • Non-Farm Job losses of 64,593. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $563.00 per household.
  • Increase in Gas Prices from 2012-2035 of $0.68 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Sherrod Brown: (202) 224-2315
Senator George V. Voinovich: (202) 224-3353

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Will the Senate Pass a Bill that will cost 2,500,000 American jobs and an average tax increase of $3


Posted by Todd Hollenbeck on Thursday, October 1st, 2009, 11:26 AM PERMALINK


In response to the Kerry-Boxer “Cap and Trade” National Energy Tax legislation released yesterday, ATR issued press releases to: Arkansas, California, Indiana, Louisiana, Massachusetts, Michigan, North Carolina, North Dakota, Ohio, and Virginia.

The press releases express the crippling effects that this energy tax will have on the states. These are state specific releases that will show the impact of this legislation on gross state product, personal income, job losses, and increased gas and electricity prices. 

All media and press inquiries can be directed to Todd Hollenbeck at thollenbeck@atr.org or by calling 202-785-0266.
 

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How Cap and Tax Will Hurt North Dakota


Posted by Todd Hollenbeck on Thursday, October 1st, 2009, 9:56 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in North Dakota. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
North Dakota:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, North Dakota will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $362,170,000.
  • Total Personal Income Loss of $452,310,000.
  • Non-Farm Job losses of 3,106. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $428.85 per household.
  • Increase in Gas Prices from 2012-2035 of $0.62 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Kent Conrad: (202) 224-2043
Senator Byron L. Dorgan: (202) 224-2551

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How Cap and Tax Will Hurt North Carolina


Posted by Todd Hollenbeck on Wednesday, September 30th, 2009, 11:53 AM PERMALINK


In our continuing, daily, state by state, look at the financial impact of the Waxman-Markey Cap and Trade Tax Bill, we will show you the projected losses in Gross State Product, Personal Income, and Non- Farm Jobs in North Carolina. 

Detailed information on this and other energy taxes can be found in the Americans for Tax Reform Energy Tax Analysis, May 2009.
 
North Carolina:
 
According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, North Carolina will suffer the following losses in 2012 as a result of Cap and Tax: 
  • A decline in Gross State Product of $4,750,510,000.
  • Total Personal Income Loss of $5,409,780,000.
  • Non-Farm Job losses of 49,671. 
An update to the Heritage Foundation’s study further shows an: 
  • Increase in Electricity Prices from 2012-2035 of $740.42 per household.
  • Increase in Gas Prices from 2012-2035 of $0.65 per gallon. 
Contact your Senators today and tell them to VOTE NO on the Waxman-Markey Energy Tax.
Senator Richard Burr: (202) 224-3154
Senator Kay R. Hagan: (202) 224-6342

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