CBO projects ‘modest’ hit for households in 2012 if House climate bill becomes law

“The loss would be modest as a
share of gross domestic product (GDP) in all years between 2012 and
2050, but it would rise over that period as the cap became more
stringent and more resources were dedicated to cutting emissions,”
Elmendorf wrote in a letter responding to a query from Rep. Chris Smith (R-N.J.).

In
2010 dollars, Elmendorf explained, that would mean households would
lose $90 in 2012, $550 in 2030, and $930 in purchasing power by 2050.

The
budget office had previously provided estimates of the average effect
on households’ purchasing power over certain spans of time, but this
estimate parses out the average effect on a yearly basis. The estimate
gives Republicans an actual number to hang on the bill going into this
fall’s midterm elections and 2012’s presidential and congressional
races.

Still, it is seen unlikely by many observers that the
Senate would take up the legislation to have passed the House, with
many centrists and virtually all Republicans having expressed
opposition to the House bill’s proposal.

Sens. John Kerry
(D-Mass.), Joe Lieberman (I-Conn.) and Lindsey Graham (R-S.C.) are
expected lay out their compromise energy legislation later this month.

Update, 4:12 p.m.: A spokesman for Rep. Ed Markey (D-Mass.), an author of the House climate change bill, notes that the CBO estimate doesn’t include a number of aspects of the legislation that could bring down costs in the long run, like cost saving and energy efficiency provisions. The CBO report, Markey’s office said, confirms what they have long claimed, which is that the bill is wholly affordable and, they say, would cost no more than the price of a postage stamp per day.

Cross-posted from the Briefing Room.