With poll after poll showing that Americans are extraordinarily concerned over the explosion in our national debt, this finding from the Heritage Foundation’s comprehensive economic analysis of the Waxman-Markey cap-and-tax bill warrants special attention:
National Debt Grows. Because the Waxman-Markey cap-and-trade tax reduces income, it reduces the revenues collected from other taxes, such as personal and corporate income taxes. And because the revenue collected from Waxman-Markey is spent, the net effect is to increase the national debt. By 2035, Waxman-Markey will have added 9.1 trillion nominal dollars to the national debt, which amounts to an increased tax liability of $12,803 for every American, or a $51,216 liability for a family of four in today’s (2009) dollars.
So, not only would the Waxman-Markey legislation increase energy taxes to the tune of $5.7 trillion, but it would generate yet another multi-trillion dollar spike — $9.1 trillion! — in our national debt.
And, if that is not enough dour debt news, tune in to your favorite media outlets around 5:00 p.m. on Friday, the preferred time for White Houses to release unpleasant news. The mid-session update of the fiscal year 2010 budget projections, you see, is overdue. With federal tax revenues tanking and spending surging, budget watchers expect the news, whenever it is released, to be bad. This is just my prediction, but what better time to release this information than late on a hot Friday afternoon in the middle of August?
And you thought those town-hall meetings were hot now . . .
Have a wonderful August.