Saturday, June 27, 2009

Cap And Trade or Bait and Switch - I told you so

I first posted this back in March, no one listened until it was too late to do anything.

The Obama budget includes a provision for auctioning off "carbon pollution permits". This can only result in higher energy costs for all American consumers as the vast majority of our nation's electricity is derived from the combustion of fossil fuels. Most of the expected 646 billion dollars that is anticipated to be raised over the next ten years by this measure would be reflected in a $400 tax cut per individual or $800 per couple. The rest would be given to wind and solar power research. The pollution permits are part of a program termed "Cap and Trade".

Here's what's going to happen.

  1. Coal and oil burning utilities will be forced to buy these permits to remain in operation.
  2. The limited nature of the permits will result in speculation.
  3. The cost to obtain a permit will be significant,
  4. The utilities will pass the expense on to the consumers.
  5. The "Tax Break" may or may not be sufficient for most Americans to cover the increased costs of electricity.
  6. As energy prices grow the government will reap more revenue in the form of taxes on the energy sold.

The results: The government wins, speculators win, the energy companies may break even and the American taxpayers will suffer.

Never mind the fact that no one has demonstrated conclusively that "global warming" is the result of human industrial activity as opposed to a natural cycle occurring over thousands of years.

I guess it's just all part of change we can believe in.

(Don't take my word for it, check out the followinfg link )