Hollywood Henry Waxman the Taxman to Raise Campaign Cash for Harry Teague

Hollywood Henry Waxman the Taxman to Raise Campaign Cash for Harry Teague

Architect of National Energy Tax to Help Line Teague’s Campaign Coffers

Washington– Majority Leader Steny Hoyer and out-of-touch Beverly Hills Democrat Henry ‘the Taxman’ Waxman – who developed his party’s devastating National Energy Tax – will be joining New Mexico’s Harry Teague on Wednesday for a big-dollar fundraiser. Ironically, Henry Waxman devised the very legislation that has put Harry Teague at odds with his constituents and in danger of losing his job next November. Teague voted for Waxman’s cap-and-trade legislation, which amounts to nothing more than a national energy tax, and will put a nearly $2,000 strain on families according to the Obama Administration.

“Raising money for his campaign chest with the Chairman responsible for passing this disastrous legislation is a slap in the face to all New Mexicans who could lose jobs, pay higher costs, and face higher debt,” said NRCC Communications Director Ken Spain. “As if it weren’t bad enough that Harry Teague took the side of his party bosses by supporting a National Energy Tax that could destroy thousands of jobs for New Mexico’s oil and gas industry, it’s insulting that Teague will be rubbing elbows with cap-and-trade advocates and the man whose name is attached to the National Energy Tax that will defund New Mexico’s school system and economic backbone.”

By putting his financial needs before his constituents, Harry Teague is putting himself at odds with New Mexican taxpayers.

“Analysts and political operatives are increasingly saying that House Democrats could face significant election losses in 2010. New Mexico’s 2nd Congressional District is, in my view, one of the seats most likely to flip…. It’s the home of the oil and gas industry that funds New Mexico’s state government and powers the economy. And many are furious with Teague for voting in favor of controversial cap-and-trade legislation earlier this year. He faced crowds of angry constituents after the vote…. In the eyes of many in the district, the Hobbs oilman, who characterizes himself as a small-town guy who’s more like his constituents than Washington politicians, began looking just like everyone else in Washington.” (Heath Haussamen, “NM’s Rep. Teague Could Be In Trouble in 2010,”  New West, 09/15/09)

With up to 12,709 jobs at stake, will Teague continue to throw New Mexicans under the bus to make a quick buck?

BACKGROUND:

Impact on Jobs: By 2030, as emission reduction targets tighten and other W/M provisions phase out, New Mexico jobs decline by 9,331 under the low cost case and by 12,709 under the high cost case

Decrease in Disposable Household Income: Higher energy prices would have ripple impacts on prices throughout the economy and would impose a financial cost on households. New Mexico would see disposable household income reduced by $70 to $166 per year by 2020 and $409 to $755 by 2030

Impact on Energy Prices: Most energy prices would rise under W/M, particularly coal, oil and natural gas. By 2015, gasoline would increase between 6% and 8%, electricity between 5% and 2% and natural gas between 16% and 26%. By 2030, gasoline prices increase between 21% and 27% while electricity prices increase by up to 61% and natural gas by up to 78%. Table 1 shows the increase in energy prices faced by a typical New Mexico household compared to national household increases over the 2020-2030 period.

Factors Contributing to Higher Electricity Prices: W/M would reduce GHG emissions from all sectors of the economy (transportation, residential, commercial, and industry); however, as the largest emitter of GHGs, the primary impact would fall on the electric sector. W/M would result in the electric industry shutting down most carbon-based generation and/or using expensive, as yet unproven technology, to capture and store CO2. To meet the stringent goals of W/M, the electric industry would also have to substitute high cost technologies, such as biomass and wind, for conventional generation.

Impact on Economic Growth: High energy prices, fewer jobs, and loss of industrial output are estimated to reduce New Mexico’s gross state product (GSP) by between $322 and $554 million per year by 2020 and $3.4 and $4.6 billion by 2030.

Impact on Industry: New Mexico’s major economic sectors will be affected by emission caps. The current two largest sectors, computer and electronic product manufacturing and petroleum product manufacturing, show decreases in output of 5.7% to 6.5% and 7.7% to 8.1%, respectively in 2030. All manufacturing sectors will suffer output losses of between 5.1% and 5.8% by 2030, while output from energy intensive sectors fall between 12.2% and 13.3%. New Mexico’s coal production would fall between 96.1% and 94.0% and electricity production falls by 18.4% to 27.9% in 2030 (Figure 6). These continued losses will have a lasting effect on the economic base of New Mexico.

Impact on Low Income Families: The impacts of W/M will be felt especially by the poor, who spend a greater share of their income on energy and other goods than other income brackets. By 2030, higher energy prices mean that low income families in New Mexico (with average incomes of $12,165) will spend between 18.8% and 20.0% of their income on energy under W/M compared to a projected 17.1% without W/M. Others on fixed incomes such as the elderly will also suffer disproportionately.

Impact on State Budgets^: The increases in New Mexico’s energy costs under W/M will impact expenditures throughout the state. Specifically, New Mexico’s 1,093 schools and universities and 58 hospitals will likely experience an 18.1% to 27.9% increase in energy expenditures by 2030. For government entities, costs for services, including public transportation and vehicle fleets, such as school buses, will also rise under W/M.

 
To view the study in its entirety, click here http://www.accf.org/media/docs/nam/2009/NewMexico.pdf    

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