Monday, September 7, 2009

What Kentucky Will Pay For Cap and Tax

Most of us who do not work in the energy industry understand in general terms that the Democrats' Waxman-Markey energy plan,"Cap and Trade," will raise our energy costs. Here are some specifics from Americans For Tax Reform on what Kentuckians will pay -- and what we will lose -- if this becomes law:

According to a study by Karen Campbell, Ph.D. and David Kreutzer, Ph.D. at the Heritage Foundation, Kentucky will suffer the following losses in 2012 as a result of Cap and Tax:
  • A decline in Gross State Product of -$1,811,910,000
  • Total Personal Income Loss of -$2,313,260,000
  • Non-Farm Job losses of -21,942
An update to the Heritage Foundation’s study further shows an:
  • Increase in Electricity Prices from 2012-2035 of $567.51 per household.
  • Increase in Gas Prices from 2012-2035 of $0.65 per gallon.

Kentucky would lose billions of dollars and 20,000 plus non-farm jobs. Our state is too poor and too small to take that kind of a hit. Perhaps the most extraordinary thing about how Cap and Tax would affect Kentucky is that unlike a natural disaster, this is a disaster that a Democratic Congress and Administration would inflict on us. Thankfully, this is a disaster that we can avert.

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