We have been hearing a lot about the “Cap and Trade Bill.” If you want to find out more about it you can read about it at The Tax Foundation. The Working Paper No. 6, By Andrew Chamberlain explains it all in detail.
Here is its abstract:
Many U.S. lawmakers view cap and trade as a politically superior non-tax approach to climate policy. However, cap and trade imposes identical economic burdens on households to a similarly designed carbon tax. Using the newly-released 2002 input-output accounts we present new estimates of the distributional impact of a typical cap-and-trade system by income, age, U.S. region and family type. In total, households would face an annual burden of roughly $144.8 billion per year with costs disproportionately borne by low-income households, those under age 25 and over 75 years, those in Southern states, and single parents with dependent children. Using RIMS II multipliers we estimate the broader economic impact of cap and trade. Depending on how the system is structured, cap and trade could reduce U.S. employment by 965,000 jobs, household earnings by $37.8 billion, and economic output by $136 billion per year or roughly $1,145 per household. Lawmakers weighing the costs and benefits of climate policy should be aware that cap and trade would impose a significant and regressive annual burden on U.S. households, and would not represent a “tax free” way to reduce greenhouse gas emissions.
If you want to find out how it will effect your household go to the Household Cap-and-Trade Burden Calculator.
After you find out how it will hit your household, call your Representatives and Senators.
Remember Obama’s promise that households that make under $250,000 will not see a tax increase? He lied.
Managing Mayhem and Multiples 
