Research Briefing

While Pushing Job-Killing $1 Trillion Gamble On Health Care, Obama’s E.P.A. Announces Job-Killing Gamble On Energy

“The Obama Administration Has Finalized A Declaration That Greenhouse Gases Endanger Public Health … Opening The Door To Broad New Regulations That Could Affect The Largest Segments Of The American Economy …” (Jim Tankersley, “Obama Finalizes ‘Endangerment Finding’ On Global Warming,” The Los Angeles Times, 12/7/09)

BUSINESSES AFRAID TO CREATE JOBS BECAUSE OF OBAMA’S CAP-AND-TRADE PROPOSAL

Small Businesses Not Hiring Due To Concerns About Obama’s National Energy Tax Legislation.  “Legislation aimed at tackling climate change might raise businesses’ energy costs … Many companies say they have responded by freezing hiring, cutting benefits and delaying expansion plans. With at least 60% of job growth historically coming out of the small-business sector, according to the government’s Small Business Administration, that kind of inertia could impede an economic recovery.”  (Gary Fields, “Political Uncertainty Puts Freeze On Small Businesses,” The Wall Street Journal, 10/28/09)

Because Obama’s National Energy Tax Could Mean Nearly 1 Million Jobs Lost Per Year. “Overall, a cap-and-trade system that reduces annual GDP by 0.34 percent per year can be expected to reduce U.S. employment by roughly 964,900 jobs per year ...” (Andrew Chamberlain, “Who Pays For Climate Policy?,” Tax Foundation, 3/09)

SO WHY DOES OBAMA DESIRE TO REPEAT EUROPE’S MISTAKES BY GAMBLING WITH JOB-KILLING CARBON REGULATIONS MUCH WORSE THAN CAP-AND-TRADE …

Europe’s Experience With Cap-And-Trade Example Of “What Not To Do On Climate.” “The European experience with cap and trade strongly urges caution. The Washington Post recently described it as ‘Exhibit A’ of what not to do on climate … Most Western European nations are currently learning, the hard way, that ratcheting down carbon dioxide emissions in this manner is very difficult and expensive.” (Ben Lieberman, “The European Experience With Cap And Trade,” The Heritage Foundation, 7/10/09)

• Because Cap And Trade Will Cost Europe $102 Billion Per Year Until 2020. “Before the December negotiations, the London-based think tank Open Europe estimated the EU climate package would cost governments, businesses and householders in the EU-25 more than 73 billion euros ($102 billion) a year until 2020.” (Editorial, “European Hot Air,” The Wall Street Journal Europe, 7/7/09)

But Obama’s E.P.A. Regulations Bring Threat Of “Worse Economic And Bureaucratic Destruction” Than Under Cap-And-Trade. “Because this law was never written to apply to carbon, the costs will far exceed those of a straight carbon tax or even cap and trade … In any case, the point of this reckless ‘endangerment’ is to force industry and politicians wary of raising taxes to concede, lest companies have to endure even worse economic and bureaucratic destruction from the EPA.” (Editorial, “The ‘Absurd Results’ Doctrine,” The Wall Street Journal, 10/4/09)

Obama’s E.P.A. Regulations “A Nightmare Scenario” For Businesses. “The blunt instrument of EPA regulation is a nightmare scenario for … major industries. Businesses that have a seat at the table in legislative negotiations would have little opportunity to influence regulations.” (Coral Davenport, “EPA Prepares To Classify Carbon Dioxide As Dangerous,” CQ Today, 12/7/09)

Because Regulations Would Be “Thicket Of Red Tape.” “The Clean Air Act, in other words, is breathtakingly unsuited to the great task of battling global warming. It would provide no economy-wide and declining cap on carbon, no market signal to industry or clean-energy investors that could spark innovation and greater efficiencies. There would be a thicket of red tape and regulations...” (Editorial, “Regulating Carbon,” The Washington Post, 9/21/09)

WHILE ALSO GAMBLING ON HEALTH CARE EXPERIMENT THAT WILL HARM OUR ECONOMY?

Obama’s Health Care Experiment Includes Job-Killing “Punitive Payroll Tax” For Businesses Who Can’t Afford Government-Approved Health Insurance. “An employer mandate with a punitive payroll tax ... could cost 1.6 million jobs with more than 1 million of those jobs lost in the small business sector. The approach fails to increase affordability and, instead, devastates the economy...” (Susan Eckerly, Letter To Representative, National Federation Of Independent Businesses, 7/15/09)

Obama’s Tax On Health Insurance Would Hit Small Business Hardest. “Small employers would also probably be hit by the taxes ... small businesses tend to pay more for their insurance than bigger employers that can negotiate better premiums ... About 14 percent of small employers, counted as those with fewer than 500 workers, now offer policies that would be subject to the excise tax ... ‘That is a very heavy hammer on the cost of your premiums,’ said Donna Marshall, the executive director of the Colorado Business Group on Health ... ‘You don’t want to cause a chilling effect on the employers who are trying to do the right thing.’“ (Reed Abelson, “A Proposed Tax On The Cadillac Insurance Plans May Also Hit The Chevys,” The New York Times, 9/20/09)

Obama’s Medicare Payroll Tax Hike Would Hit Many Small Business Owners. “The legislation would be paid for through a ... a payroll tax on the wealthy ...”; “In a 2007 survey, the National Federation of Independent Business found that about 15 percent of small-business owners -- and half of those with at least 20 employees -- said they expected their household income to exceed $200,000.” (Ricardo Alonso-Zaldivar, “Tempers Flare As Senate Debates Health Care,” The Associated Press, 12/2/09; Lori Montgomery and V. Dion Hayes, “Small Businesses Brace For Tax Battle,” The Washington Post, 4/27/09)