Full Title: Boxer–Sanders Carbon Tax: Economic Impact
Author(s): David W. Kreutzer and Kevin Dayaratna
Publisher(s): The Heritage Foundation
Publication Date: April 1, 2013
Full Text: Download Resource
Senators Barbara Boxer (D–CA) and Bernie Sanders (I–VT) recently proposed the Climate Security Act of 2013, which includes a tax on the use of carbon. Heritage analysis of the bill shows that it would increase the cost of energy, reduce incomes, lead to fewer jobs, and have minimal impact (if any) on global warming.
The economic impacts would include (after adjusting for inflation):
- A family of four losing more than $1,000 of income per year,
- Over 400,000 lost jobs by 2016,
- Coal production dropping by 60 percent and coal employment dropping by more than 40 percent by 2030,
- Gasoline prices rising $0.20 by 2016 and $0.30 before 2030, and
- Electricity prices rising 20 percent by 2017 and more than 30 percent by 2030.