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Congresswoman Virginia Foxx (NC-05) today voted against H.R. 2454, a bill that would essentially create a national energy tax through a “cap and trade” scheme.  Some estimates found that the total tax impact of this legislation will amount to $2,979 per year for a family of four.

“As we struggle to make our way out of a recession, I could not vote for the creation of a new national energy tax,” Foxx said.  “North Carolina families and businesses can’t afford the financial strain of high energy costs in this bill.  We should be working to ensure taxpayers are less burdened by taxes and red tape—not more.” 

Under H.R. 2454, electricity costs are estimated to rise by 90 percent. According to the Heritage Foundation, employment will be lower by 1,105,000 jobs per year as a result of this national energy tax.  The bill will have an especially negative effect on energy-intensive sectors like manufacturing—which employs one out of six people in North Carolina’s 5th Congressional District.  H.R. 2454 will also reduce the United States’ economic output by $9.6 trillion.   

“Tens of thousands of people in North Carolina who work in manufacturing are at risk of losing their jobs due to the burdens placed on employers by this bill,” Foxx said.  “Many employers will be forced out of business or out of the country because of high energy prices and the new regulations in this legislation.”

The legislation will be particularly damaging to rural areas and farming communities.  Because rural households spend 58 percent more on fuel than urban residents as a percentage of their income, high energy prices cause disproportionate harm to rural families.  The Heritage Foundation also estimates that farm income will drop by $50 billion by 2035 if H.R. 2454 becomes law.