Hit hardest would be the "95% of working families" Mr. Obama keeps mentioning, usually omitting that his no-new-taxes pledge comes with the caveat "unless you use energy." Putting a price on carbon is regressive by definition because poor and middle-income households spend more of their paychecks on things like gas to drive to work, groceries or home heating.
The Congressional Budget Office -- Mr. Orszag's former roost -- estimates that the price hikes from a 15% cut in emissions would cost the average household in the bottom-income quintile about 3.3% of its after-tax income every year. That's about $680, not including the costs of reduced employment and output. The three middle quintiles would see their paychecks cut between $880 and $1,500, or 2.9% to 2.7% of income. The rich would pay 1.7%. Cap and trade is the ideal policy for every Beltway analyst who thinks the tax code is too progressive (all five of them).
Asked by Anonymous at 7:19 PM on Mar. 9, 2009 in Politics & Current Events
Answer by waldorfmom at 7:54 PM on Mar. 9, 2009
Answer by Anonymous at 7:19 PM on Mar. 9, 2009
Answer by akinbottom2 at 8:20 PM on Mar. 9, 2009
Answer by Anonymous at 8:37 PM on Mar. 9, 2009
Answer by tnmomofive at 8:42 PM on Mar. 9, 2009
Check out some of the top posts today in Groups: