Cap and Trade Bill: Just Another Tax With Little Results, but at What Price?

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Have you been watching the debate this week on the Lieberman/Warner Cap and Trade Bill? A historical moment or just another round of rhetoric from most U.S. Senators who want to be on TV?

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This week, one of the biggest heated legislative and lobbying wars of 2008 comes to a head as the Senate takes up a controversial bill to curb climate change by reducing carbon emissions.

Named for its original sponsors, Sens. Joseph Lieberman, I-Conn., and John Warner, R-Va., the bill would establish a market-based mechanism to reduce green house gas emissions by as much as 66% by 2050. And while there’s little chance it will pass right now, lawmakers and businesses are paying strict attention. They see it as the precursor to new laws within the next few years, and everyone–from energy companies to automakers to manufacturers–wants to sway the discussion.

My question is how much pork and earmarks are going to be added to this bill for the Congress’s pet home state projects that will not benefit the environment if this bill is passed? This bill is suppose to be modeled after the UN cap and trade policy and just how much has that policy reduced Co2 emissions? Uh, not working very well according to this recent article found in the Guardian “Billions Wasted on UN Climate Programme.”

I am for a clean environment, but since when do Lieberman and Warner become environmental experts on cap and trade issues for the environment? I saw Lieberman being interviewed on a major news network on Monday and the poor guy has no idea what he is talking about on the cap and trade issue and global warming. The only words I really heard were how great this new bill would help America and how much money would be raised. Why don’t we call this bill what it really is, a hidden tax.

The only thing Congress likes more than hidden taxes is earmarking, being able to hand out special favors to valued party supporters and campaign donors and the current cap-and-trade proposal will open up a flood gate which will nicely fill the trough for pork. Tom Nelson of the Wall Street Journal could not state this any better: WSJ via Tom Nelson

Will Congress ease the pain for the cap and trade bill (hidden tax)? At what cost? To ease the pain and allow for economic adjustment, the bill would dole out “allowances or kickbacks” under the cap that would stand for the right to emit greenhouse gases. Senator Barbara Boxer has taken this nightmare a step further by introducing a package of manager’s amendments that mandates total carbon reductions of 66% by 2050, while earmarking the allowances (kickbacks). The businesses make carbon, they charge the taxpayers for reducing the carbon, collect money from taxpayers for carbon, then they still get allowances (kickbacks) from the feds paid for by the taxpayers. A real issue of double dipping and still the carbon may not be reduced to accepatable limits and meet the bill requirements. Do Senators Lieberman and Warner really know how much carbon will be reduce by 2050 or are these figures just speculative?

But if you want to know how much real pain and cost this bill will inflict on the citizens of the U.S. if passed, then check out the links below:

  • Various analysis show that Lieberman-Warner would result in higher prices at the gas pump, between 41 cents and $1 per gallon by 2030.
  • The bill would represent the largest tax increase in U.S. history.
  • The bill would be the biggest pork bill ever contemplated with trillions of dollars in giveaways.
  • Science Applications International Corporation SAIC shows that up to 4 million jobs will be lost by 2030 in the U.S.
  • Manufacturing jobs will be one of the hardest hit sectors as the Energy Information Administration (EIA) projects that manufacturing output will decline by up to 9.5% in 2030. This country has already lost 19% of its manufacturing since 2000.
  • EIA estimates that this bill will result in the loss of nearly 300,000 U.S. jobs by 2020.
  • The Congressional Budget Office (CBO) estimates that “most of that cost would ultimately be passed on to consumers.”
  • CBO says Lieberman-Warner would effectively raise taxes on Americans by more than $1 trillion over the next 10 years.
  • Sen. George Voinovich (R-Ohio), warned last week that Lieberman-Warner “could result in the most massive bureaucratic intrusion into the lives of Americans since the creation of the Internal Revenue Service.”
  • The bill would not have a detectable impact on the climate. According to the Environmental Protection Agency’s own analysis, by 2050 Lieberman-Warner would only lower global CO2 concentrations by less than 1.4% without additional international action.
  • The Wall Street Journal calls it “the most extensive government reorganization of the American economy since the 1930s.”
  • The bill would hinder U.S. competitiveness. It will transfer American jobs overseas where environmental regulations are much more lenient.
  • If you are wonderng what is going to happen, just watch and then get involved by calling your Senator on these issues immediately.

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6 Responses to Cap and Trade Bill: Just Another Tax With Little Results, but at What Price?

  1. chemicallygreen.com June 6, 2008 at 3:55 pm #

    The Senate Cap and Trade Bill has been dropped as of today.
    Proposed by Senators and Lieberman to supposedly help global warming and reductions of Co2 emissions, the bill, which was a hidden tax, has been defeated.
    Chemically Green

Trackbacks/Pingbacks

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