Concerned about the impact of the proposed national energy tax, U.S. Rep. Blaine Luetkemeyer (MO-9) later today will highlight the disastrous consequences of the so-called cap-and-trade plan on rural Missourians during a hearing of the House Agriculture Committee.

 

“This bill will increase taxes, eliminate jobs or drive them offshore and raise the energy costs of those hard-working farm families trying to make ends meet. This is nothing more than a national energy tax that would be disastrous, particularly in light of our nation’s current economic circumstances,” Luetkemeyer said. “This national energy tax will auction off carbon emissions to generate revenue for more government spending and will do great harm to small business owners, farmers and rural communities.”

 

To date, 34 agriculture groups, including the Missouri Farm Bureau, American Farm Bureau Federation, American Farmers and Ranchers, National Corn Growers Association, National Chicken Council and National Turkey Federation, have notified Congress of their opposition to the national energy tax.

Specifically, the legislation would add an additional tax burden on family budgets already stretched thin. A study by the Massachusetts Institute of Technology estimates a $3,128-per-household tax increase and an analysis by the National Rural Electric Cooperative Association estimate that the monthly residential electricity bills in 25 states would increase 15 to 28 percent per household.

Rural residents would be hit hard by the proposal because they must travel farther for routine errands -- 25 percent more miles than urban households -- according to the most recent federal highway data. Rural households also spend 58 percent more on fuel than urban residents as a percentage of income. Also, the industries that will be most negatively impacted by higher energy costs, such as agriculture, manufacturing, construction, transportation, mining and utilities, comprise 31 percent of all rural employment compared to only 19 percent of urban employment.