Who Pays the Bill for the Obama Climate Agenda?

President Obama’s climate policies would cover four-fifths of U.S. carbon-dioxide emissions and would be similar in scope to an economy-wide carbon tax. The cost of such policies would fall disproportionately on the lowest-income U.S. households, which spend more than 35 percent of their annual income on energy; by comparison, households in the top 10 percent of the income distribution spend less than 3 percent of their income on energy. Obama’s climate policies would cost households in the lowest quintile $19 billion per year, equal to a 166 percent increase in their federal tax bills; households in the second-lowest quintile would pay an extra $25 billion, equal to a 33 percent tax increase.

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