WASHINGTON, Feb. 26, 2013 /PRNewswire-USNewswire/ -- The American Fuel & Petrochemical Manufacturers (AFPM) reacted to the recently released study Economic Outcomes of a U.S. Carbon Tax, conducted by the National Association of Manufacturers (NAM), detailing the harmful impact of a carbon tax on the U.S economy.
In this study, NAM conducted extensive research into the impact of two scenarios that have been publicly debated. The first would establish a carbon tax that begins at $20/ton and increases 4% per year. The other tracks a $20/ton scenario until 2018 and then sets an emissions trajectory to reach an 80 percent carbon reductions by 2053, with a maximum carbon price of $1000/ton. Both models demonstrate that the net impact on the U.S. economy would be negative.
"The damaging effects of a carbon tax to U.S. consumers and the economy would be significant and could lead to lower employee wages, higher company costs and reduced labor productivity. Over time, workers' incomes could be expected to decline significantly, while seeing an increase in energy, electricity, gasoline and other costs. The study also indicates that either scheme would result in reduced consumption, investment, labor market decisions and lower federal revenue from taxes on capital and labor," said AFPM President Charles T. Drevna.
"The social costs of a carbon tax far outweigh any potential benefits. It's time to stop the emotional rhetoric when it comes to the use of fossil fuels and focus on using our nation's resources in a safe and responsible way that benefits American workers and our nation's economic welfare," Drevna continued.
AFPM, the American Fuel & Petrochemical is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life. AFPM members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support two million American jobs.
SOURCE American Fuel & Petrochemical Manufacturers