The Director of the Congressional Budget Office, Douglas W. Elmendorf, told the Senate Energy and Natural Resources Committee that the House-passed Waxman-Markey cap-and-trade tax climate change legislation -- would slow the economy and would cause "significant" job losses in fossil fuel industries:
We want to leave no misunderstanding that aggregate performance -- the fact that jobs turn up somewhere else for some people -- does not mean that there are not substantial costs borne by people, communities, firms in affected industries and affected areas. You saw that in manufacturing, and we would see that in response to changes that this legislation would produce.
Director Elmendorf also testified that the Waxman-Markey cap-and-tax would cut the nation's gross domestic product by 0.25 to 0.75 percent in 2020 compared with "what it would otherwise have been," and by 1 to 3.5 percent in 2050.
Elmendorf's testimony undercuts the current position of President Obama and the Democrats' congressional leaders, who claim cap-and-tax would help revive the economy. They make that claim despite the fact that presidential candidate Obama said his cap and trade plan will cause electricity rates to "necessarily skyrocket" and will bankrupt anyone who builds a coal-powered plant.