McCaul Votes Against ‘Cap and Tax'
WASHINGTON, D.C. – Congressman Michael McCaul (R-TX 10) voted against a landmark Democrat bill that promises to increase the cost of energy for every American family and business, and drive jobs out of the country.
"This is the wrong time for the wrong bill. This bill will kill jobs at a time we can least afford," said Rep. McCaul. "The smart alternative is to invest more in research and development in green technologies which will create jobs, reduce pollution without punishing working families, farmer and ranchers, and small businesses. This bill once again benefits Wall Street at the expense of Main Street. It’s one more failed European model we shouldn’t import."
Congressman McCaul supports the Republican alternative energy plan. The American Energy Act increases our domestic energy supply by developing more of our resources, investing in alternative fuels and offering incentives for better efficiency and conservation – without placing a greater burden on our families, our businesses and our economy. Rep. McCaul voted for an amendment to Cap and Trade that creates a Manhattan-type project to study energy independence.
The "Cap and Trade" legislation, H.R. 2454, caps the amount of carbon emissions companies can produce. If a company goes over the limit, it must pay a fee in the form of a carbon "credit".
Since Cap and Trade will make it more expensive to produce energy, the consumer will also pay more. According to the State Comptroller, Texans will see a $1.15 billion increase in their energy prices, which comes to $1,136 per Texas family per year if this legislation passes. A similar program in Germany increased home energy prices 25%. Emissions reduction was a result of lost economic activity.
"Even the President admits this will dramatically increase energy costs. I agree. Get ready to pay more," said McCaul, noting that the U.S. Chamber, the National Association of Manufacturers and the Farm Bureau oppose this plan.
Companies that are not able to meet the cap are expected to move their manufacturing facilities overseas to countries with fewer regulations. Nationwide, this bill will cost $9.4 trillion in GDP and 2.5 million jobs. Gasoline prices are expected to increase $.77 a gallon as industry passes on the cost increase to consumers.
During his 2008 campaign President Obama told the San Francisco Chronicle that manufacturers "would have to retrofit their operations. That will cost money. They will pass that money on to consumers."
Texas Impacts of Cap and Trade
*Rural Energy Co-ops estimate price increases for customers at 38%
*Texas Comptroller expects cost for the average Texas family to increase $1,136
*Texas could lose 135,000-277,000 jobs in the first year and up to 400,000 jobs by 2030
*Overall, $1.15 billion increase in energy costs for Texans (after subsidies to offset increased costs)
*American Petroleum Institute predicts this bill will increase gas prices $0.77 over the next decade.
Impact of H.R. 2454 "Cap and Trade" on Texas’ 10th Congressional District
Gross State Product (In Millions)
GSP Loss in 2012 -$276.95
Average GSP Loss, 2012-2035 -$551.38
Personal Income (In Millions)
Personal Income Loss in 2012 -$489.94
Average Personal Income Loss, 2012-2035 -$283.76
Non-Farm Jobs
Non-Farm Job Loss in 2012 -3,902
Average Non-Farm Job Loss, 2012-2035 -2,859
source: Heritage Foundation Analysis