Analysis by the Treasury Department shows that the Democrats’ National Energy Tax would likely cut U.S. Gross Domestic Product (GDP) significantly: “Economic costs will likely be on order of 1% of GDP, making them equal in scale to all existing environmental regulation.” Using the analytical methodology developed by Christina Romer, Chair of the Council of Economic Advisors, and Jared Bernstein, the Vice President’s Chief Economist, this data suggests that such a massive energy tax would eliminate 2.2 million American jobs. That could increase today’s 9.7% unemployment rate to 11.1%, and leave a total of 17.1 million workers unemployed.
Reacting to the report, Ranking Member Dave Camp said, “The Obama Administration’s own economic models and analysis of the National Energy Tax Speaker Pelosi forced through the House confirms what we already know – it will cost millions of Americans their jobs. The Democrats’ plan to layer new energy and health care taxes on struggling American families is exactly the wrong approach to creating jobs and fueling an economic recovery.”
To see the impact of the Democrats’ National Energy Tax on American jobs click here.