A potential proposal of a carbon tax and all the damage that would accompany such misguided policies has been making headlines in Washington of late. Senators Barbara Boxer (D-CA) and Bernie Sanders (I-VT) have introduced legislation that would implement this damaging tax.
The NAM weighed in on the issue today with the release of a study conducted by NERA Economic Consulting, titled Economic Outcomes of a U.S. Carbon Tax. The report found that levying such a tax would impact millions of jobs and result in higher prices for natural gas, electricity, gasoline and other energy commodities. Manufacturing output in energy-intensive sectors could drop by as much as 15.0 percent and in non-energy-intensive sectors by as much as 7.7 percent.
This week Treasury Secretary Nominee Jack Lew said that, “the Administration has not proposed a carbon tax, nor is it planning to do so.”
Senator David Vitter (R-LA), the ranking Senator on the Environment and Public Works Committee, has sent President Obama a letter asking if the Administration will live up to Mr. Lew’s promise.
With the evidence from the NAM’s report so clear that a carbon tax would have a catastrophic economic impact, we hope that the President will uphold his promise to never propose such a foolhardy, punitive tax that would undermine the U.S. economy.