To be clear: A Carbon Tax Will be an Economic Disaster

Share on Facebook
Tweet this Story
Pin this Image

Posted by James Morrone Jr on Tuesday, February 16th, 2016, 2:27 PM PERMALINK

Recently some misguided lawmakers and green ideologues have suggested that a carbon tax is the most logical route for the country. However the concept of a carbon tax threatens to hurt the American economy more than any benefit it would produce. Such an ideologically driven tax scheme will only ensure more American families have to use more money to buy less and less.

One of the most resounding and negative effects from such an aggressive tax can be seen through the stagnation of an already weak American economy. Under a carbon tax, the American GDP is projected to see a loss of $146 billion by year 2030. It is also projected that implementing a carbon tax would cause the loss of up to 1 million jobs by the year 2030.

The loss of such capital and jobs in the economy will have the greatest impact on the low and middle class, further reducing the purchasing power of the average American. In fact, a study by the Congressional Budget Office (CBO) found that a carbon tax would lead to higher costs for goods and services, and thus “would diminish the purchasing power of people’s earning, effectively reducing their real wages.” It is wholly hypocritical of carbon tax advocates to willingly jeopardize the economic well being of the nation’s most vulnerable in an effort to benefit ideology. 

Aside from the large drain placed on the economy, energy prices as a whole will go up, once more slamming low and middle class Americans. Under such a tax, energy prices would skyrocket up between 20 to 30 percent from current costs. If the President and his crony ideologues have their way, Americans can say goodbye to low gas prices, let alone imagining how high heating and electricity costs will be.

Such an unaffordable tax on carbon will cause much more harm to the country than any miniscule or perceived benefit that pro tax advocates claim. One caveat they also ignore is it is more than clear that main manufacturers of the world, like China, India, and Southeast Asia, are not nor planning to implement such an anti-growth tax. It would be wildly irresponsible to sacrifice American well-being in an unjustified quest to make a political statement.

Photo Credit: 
Olga Lednichenko