Many families forced to pay more than $1,300 in higher energy costs
FACT: As CBO Director, Mr. Orszag testified to the Ways and Means Committee on September 18, 2008, that “decreasing emissions would also impose costs on the economy – much of those costs will be passed along to consumers in the form of higher prices for energy and energy intensive goods.”
FACT: Director Orszag’s written testimony stated that the average annual household cost was $1,300 for a 15% cut in CO2 emissions (80% less than the cut sought in President Obama’s budget).
FACT: If a 15% cut in CO2 will cost families on average $1,300 per year, then the 83% cut targeted by President Obama’s energy tax will be dramatically more expensive for employers and families.
FACT: The Administration states the ‘Make Work Pay’ credit is designed to offset higher energy costs. However, even if a family received the full $800 maximum credit, the OMB Director’s testimony confirms that families will pay at least $500 per year above and beyond their ‘Make Work Pay’ credit in out-of-pocket higher energy costs.
FACT: Many families would bear the full burden of the entire $1,300-plus in higher energy costs, since retirees, the unemployed and college students are not eligible for the Make Work Pay Credit.