Energy Scorecard

Tomorrow, the House will take up H.Con.Res. 89. Introduced by Rep. Scalise, the resolution expresses the sense of Congress that a federal carbon tax would be detrimental to the economy. This resolution marks an important opportunity for Congress to take a stand for affordable and reliable energy. The American Energy Alliance urges all Representatives vote YES on H.Con.Res. 89.

A carbon tax is essentially a tax on the use of natural gas, oil, and coal, which make up over 80 percent of the energy we use in America. Such a tax would inflict considerable damage to the economy and would significantly raise energy costs on American families. In 2013 theCongressional Budget Office determined that a carbon tax “would have a negative effect on the economy” and \"diminish the purchasing power of people\'s earnings, effectively reducing their real [inflation-adjusted] wages.\"

A carbon tax is also a naturally regressive tax, meaning the hardest hit would be low income families. According to census data, families making less than $10 thousand per year spend nearly 70 percent of their after-tax income on energy, while those between $10 thousand and $30 thousand per year spend over 20 percent on energy. Even if implemented, a carbon tax would do essentially nothing to accomplish its stated goal of combating a global temperature rise. A study by the Cato Institute found that even if the U.S. were to reduce all carbon emissions linearly by 2050, the average global temperature would be reduced by a mere 0.1 degree Celsius by 2100.

This sense of Congress resolution provides a key marker for Representatives to vocally oppose such taxes. We urge all Members of Congress vote YES on H.Con.Res. 89.

Click here to read AEA\'s analysis of the resolution