If current legislation calling for a cap-and-trade scheme to cut carbon emissions becomes law, the poorest among us will bear the burden of higher prices. America's richest citizens, as well as Europeans, will be the beneficiaries of this wealth transfer, according to two new studies.
The Institute for Energy Research study shows that the highest-earning households would net a profit of $604 a year under the Waxman-Markey energy bill that barely passed the House. Americans who make less than $18,370 a year - the lowest 20 percent of wage earners - would pay an additional $451 a year.
How can we seriously consider legislation that would require our poorest citizens to pay such a high price?
The news is also bad according to research by Point Carbon, which shows that under a call to link United States and European Union cap-and-trade markets, E.U. carbon prices could fall 50 percent while U.S. prices would go up between 10 and 30 percent.
America should not be a country that robs the poor to fund the rich. This legislation needs to quickly go down in defeat.