Phil Kerpen

The White House continues to inch closer to a carbon tax. In Obama’s first post-election press conference, he dodged the question. The next day his spokesman Jay Carney said: “We would never propose a carbon tax, and have no intention of proposing one.” Great, but they don’t have to propose it. The proposals have now been made by Obama’s key allies. Senator Barbara Boxer, the chairman of the Senate Environment and Public Works Committee introduced a carbon tax bill with Vermont’s Bernie Sanders, a self-described socialist. On the House side, the top Democrat on the Energy and Commerce Committee, Henry Waxman, has introduced a carbon tax discussion draft. This week Obama indicated he’s quietly preparing to back these proposals.

“If we move aggressively on an issue like climate change -- that’s not an easy issue for a lot of folks,” Obama said to the first meeting of the operatives of Organizing for Action – his supposedly non-partisan continuation of his presidential campaign. “I want to make sure that a congressman, senator feels as if they've got the information and the grassroots network that’s going to support them in that effort.”

So the bills have been introduced and Obama is readying his grassroots army. This is looking increasingly real, and the economic stakes are enormous.

Let’s start with the pain at the pump. The Boxer-Sanders bill taxes carbon dioxide at $20 per metric ton, which works out to 17.8 cents a gallon of gasoline. So it basically would double the existing federal gas tax. (Which of course begs the question – don’t we already tax carbon enough?) It gets much worse; Boxer-Sanders automatically raises the tax 5.6 percent per year for 10 years, enough to double the tax to 30 cents. And the tax would also hit your electric bill, of course, and industrial energy users would be hit hard.

A study by the National Association of Manufacturers found that a carbon tax similar to Boxer-Sanders would knock an immediate half a percent off of GDP and threaten millions of jobs.

The Waxman discussion draft is potentially much worse. It proposes a range of starting prices and automatic increases up to $35 per metric ton and 8 percent. That would mean about 31 cents a gallon gas tax to start, automatically jumping to 67 cents by year 10 and $1.34 by year 20. Of course electricity generation, manufacturers, and every product grown, shipped, or manufactured would also be hit.


Phil Kerpen

Phil Kerpen is president of American Commitment, a columnist on Fox News Opinion, chairman of the Internet Freedom Coalition, and author of the 2011 book Democracy Denied.

American Commitment is dedicated to restoring and protecting America’s core commitment to free markets, economic growth, Constitutionally-limited government, property rights, and individual freedom.

Washingtonian magazine named Mr. Kerpen to their "Guest List" in 2008 and The Hill newspaper named Mr. Kerpen a "Top Grassroots Lobbyist" in 2011.

Mr. Kerpen's op-eds have run in newspapers across the country and he is a frequent radio and television commentator on economic growth issues.

Prior to joining American Commitment, Mr. Kerpen served as vice president for policy at Americans for Prosperity. Mr. Kerpen has also previously worked as an analyst and researcher for the Free Enterprise Fund, the Club for Growth, and the Cato Institute.

A native of Brooklyn, N.Y., Mr. Kerpen currently resides in Washington, D.C. with his wife Joanna and their daughter Lilly.