Carbon Tax And The President'S Budget
It is so good to be with you. I thank the gentleman for his leadership on this issue. You have just been a stalwart on this. As we have looked at what it takes to address the energy needs of our Nation and how we should go about that, of…
It is so good to be with you. I thank the gentleman for his leadership on this issue. You have just been a stalwart on this.
As we have looked at what it takes to address the energy needs of our Nation and how we should go about that, of course, we all know that one of the things we have to do is look at all of the above. And we began talking about this last year and spent some time talking about that we needed an all-of-the-above strategy to make certain that we addressed every component that was out there, every possibility that was going to be held. It is an honor to serve on the Energy and Commerce Committee with the gentleman from Illinois. It is also an honor to work with the Select Committee on Energy Independence. We know that this is a direction where we need to move towards energy independence. We know that we need to do this in a thoughtful way. We also know that we need to do this without raising taxes on the American people. Certainly that is possible.
As the gentleman and my colleague from Minnesota were both saying, the taxes that are out there are of tremendous concern to us. I appreciate the poster that the gentleman has where it shows what it is going to cost every family for this cap-and-tax scheme that the Democrat leadership is wanting to put in place. The MIT researchers feel that this tax is going to end up being $3,100 per family. That is something that is going to far exceed even the $1,600 that we see there.
It basically is a tax every time you turn on the light switch, every time you plug in the coffee pot and every time you turn on the computer. Every single time you go to use any energy source, you are going to be paying a tax. That means if you freeze your food, you're going to pay more. If you cook your food, you're going to pay more. Everything you use is going to end up costing you more, $3,128 per family per year. That is not my estimate. It is not Mr. Shimkus' estimate. That is the estimate from researchers at MIT as they look at this. And CBO, the Congressional Budget Office, also warns us of the burden that this is going to place on our middle income and our working families here in this country.
Many of my constituents are saying, ``what in the world is a cap-and- trade, or what is a cap-and-tax?'' And they are asking about how this would go about. And they can't believe that with the greenhouse gasses and the carbon emissions that you would have to go in and buy permits to use this. Indeed, our agricultural community is very concerned about this because what we are hearing from our friends across the aisle is that there would be a tax on every head of cattle. There would be a tax on every pig. What is that going to do? It is going to increase the cost of the food that you eat.
We know that it doesn't stop there, and the taxing doesn't stop there. The gentleman has talked some about coal and clean coal technologies. He has talked about nuclear power and the importance of having that in our strategy of how we solve this problem. What is the best way to take action? Of course, we know that it is going to be more difficult for our electric power generators to generate the electricity that we are going to need. We know that for anyone that works or deals with hydrocarbons, it is going to drive their costs up. Certainly our trucking and logistics companies are going to see incredible increases in taxes. All of that doesn't get equated and rolled into the $3,128 per family that this would cost. These are all additional costs that would be seen in the increased cost of commodities that everyone is going to have to pay.
Now, one of the things that I have thought was, it's really quite curious, in all of this discussion, we all know that the best economic stimulus is a job. And you can't go anywhere right now without hearing about the economy. We all are worried about the recession and the length of the recession. We are worried about how we can energize this economy. We know the best economic stimulus is a job. And we know that the stimulus plans and the budget, all these ideas that have come from the Democrat side of the aisle, they tax too much, they borrow too much, and they spend too much. We all recognize this. But jobs growth is one of the things that we have focused on. Certainly with pushing the stimulus, we heard from the administration and the Democrat leadership, well, it was going to create 3 or 4 million new jobs. Well, as we have looked at this cap-and-tax proposal alone, just that portion of it, not looking at any other portion of it, we have seen that there are estimates that have come to us from CBO that the cap and tax could cost us as many as 3 or 4 million jobs. So putting this tax in place in the budget
would negate all the jobs that they think they would create by going through the stimulus and the money that they have put out there in the form of spending.
Also, I think that there has been much discussion about green jobs, and would this proposal create new green jobs? There is a good bit of study on this from Heritage Foundation and some others that say, no, such a proposal would actually reduce economic growth, reduce the gross domestic product and reduce employment opportunities. So for those of us who look at this as an issue of how we recover, what are the steps we take for this economy to recover, how do we reduce the tax burden, and then we look at the analysis not from you and me, but from outside entities, we see that this cap-and-tax scheme would be something that would be a jobs killer and a reduction in the gross domestic product of our Nation.
And I yield back to the gentleman from Illinois.
Well, my constituents ask this regularly, and I have had an opportunity this week to meet with some of my constituents who are in the auto manufacturing industry and who work in logistics. Their question is always what in the world do people in Washington think they are doing? Are they that removed from what is happening in our communities? Do they not understand how jobs growth takes place?
You've got to have some incentives there for jobs growth to take place. Certainly, it seems there is a disconnect here.
My constituents know you cannot spend your way to recovery, and you cannot build recovery on a foundation of debt. They absolutely understand that. And they are very concerned that in the midst of this recession, which troubles us all, and as you look at the jobs loss that is taking place, the amount of jobs loss that has taken place the first quarter of this year, we know that to increase taxes, you can go back and look time and again at how things have taken place through our history. Certainly you can look at the late seventies. If you want a recent example, look at what transpired in 1977, 1978, 1979 and 1980, I was a young mom at that point in time, 13 percent mortgage on homes, 20 percent inflation. Raising taxes in a recession does not work. We do know that lowering the rate of taxation and spurring economic growth is good for Main Street, it is good for the American people, and it is good for our GDP and for our government and our economy.
If the gentleman would yield, I wish you would read that quote one more time because as we talk about renewables and the renewable standards that are being placed out there that would be so harmful to our electric power generators, I think this is very important.
If the gentleman will yield, I hope you will put those figures on the amount of space it would take for the wind turbines and other components to fuel one steel factory. I would imagine your research also shows that one steel factory probably has one power generation area, and it would be interesting to see the amount of acreage required for that. But I would encourage the gentleman to put this on his Website so that constituents of ours who are listening to this debate can pull those down because what we are hearing is as people have moved to growing corn and growing products to make renewable fuels and ethanol and the bio-diesels, but especially the ethanol, we are hearing of food shortages in some areas because corn is not being used for food. And certainly Haiti and some other countries that have food shortages, we have that documented evidence that shows that there is a need to move that production into the food arena and not
necessarily into the ethanol area because of the food shortages that are existing in this world today. And certainly also because of the subsidies that are required to make ethanol affordable and to get the amount of energy that is used in producing a gallon of ethanol, to get that down.
Certainly research and innovation will help us with the renewables, but we are not to the point where this can become the primary source of our electricity, or it is going to shut down our manufacturing, our productivity, the movement of our transportation fuels, the use of transportation fuels, the movement of products and commodities around our country, and the ability of people to be able to go from one area of the country to another in a reasonable amount of time.
It is something that is of tremendous concern to us because as I said earlier, the best economic stimulus is a job. And all of the outside research and the data we have been able to compile shows that this is not going to create jobs, it is going to cost us, and there is going to be a negative impact on our GDP.
I yield back to the gentleman.