A Carbon Tax Could Have A Costly Impact On Our Economy

By April 9, 2013Economy, Energy

In yesterday’s Wall Street Journal Georg P. Schultz and Gary S. Becker wrote about their support for a carbon tax. They state that a carbon tax would put all Americans on a level playing field.

Back in February the National Association of Manufacturers released the results of an extensive study conducted by the non-partisan NERA Economic Consulting. The study looks at two carbon tax scenarios: one levied at $20 per ton increasing at 4 percent and the other designed to reduce carbon dioxide (CO2) emissions by 80 percent. Both cases would have a negative impact on the economy.

Energy costs for families would increase as would the costs to use natural gas. Most states would see an increase in gas prices of 20 cents a gallon. During a time when families and small businesses are still struggling this would be an added cost they just can’t afford.

Today the NFIB released the results of their small business sentiment survey which showed small business confidence still down. Business owners are anxious about the economy and soft growth in sales.

Manufacturers are looking to Washington for pro-growth policies which will allow manufacturers to grow and take full advantage of our nation’s energy resources. And a carbon tax could potential have costly consequences for our economy.


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