FOR IMMEDIATE RELEASE: March 1, 2017
15 Cents per Gallon & other Increased Energy Rates Will Further Harm RI Families, Businesses, and State’s Overall Competitiveness
Providence, RI — The Rhode Island Center for Freedom & Prosperity supports a letter to Ocean State lawmakers issued today by Americans for Tax Reform (ATR), the national pro-taxpayer group headed by Grover Norquist, in opposition to the concept of a new state carbon tax on energy; a tax that will kill jobs in Rhode Island.
Legislation sponsored by Senators Jeanine Calkin, Ana Quezada, James Seveney, Harold Metts, and Frank Lombardo (S0365) would place a new tax of $15 per ton of emissions; a tax that will then increase by an additional $5 per year. The bill will be heard today by the Senate Committee on the Environment and Agriculture. The House version of the bill (H5369) sponsored by Representatives Regunberg, Carson, Handy, Keable, and Donovan has not yet been scheduled for a hearing in the House Finance Committee.
“This progressive-government kind of interference in the market, which will drive up energy rates for every Rhode Island family and business, is one of the major reason’s why Ocean Staters suffer from the 50th ranked business climate and the 48th rank in family prosperity,” commented Mike Stenhouse, CEO for the Center. “Once again, some lawmakers are placing the advancement of a radical green agenda, ahead of the interests of the people of our state – the forgotten families.”
Already paying some of the highest energy and gasoline rates in the country, Rhode Island families and business could see an increase of up to 15 cents per gallon if this bill were to become law, according to ATR.
Job-Killing, Economy-Busting Proposal? Whether via carbon taxes, green energy mandates, or restrictions on cheaper fossil-fuel based energy production, higher energy costs are a major drag on economic growth. According to a 2016 report by the Center, an extreme green energy agenda, which this bill would advance, could result in dire economic consequences;
- 4,000 – 6,000 fewer jobs
- $141-$190 million in total costs
- a 49-73% increase in the base cost of electricity, leading to
- a 13-18% increase in electricity rates
- $670-$893 million extracted from the economy
“Our state economy is simply too fragile to be able to handle this kind of negative hit,” concluded Stenhouse. “And at what offsetting gain?”