Cap and Tax

Congratulations, America. The Congress and President that you elected are poised to pass Cap and Trade — which is essentially Cap and Tax — legislation tomorrow. As the WSJ puts it, “Under a cap-and-trade system, government sets a cap on the total amount of carbon that can be emitted nationally; companies then buy or sell permits to emit CO2. The cap gets cranked down over time to reduce total carbon emissions.” Translation: Raise the price of energy consumption so that less energy is consumed. Sounds good, right?

Wrong. Cap and Trade is essentially just another tax hike (see The Heritage Foundation’s analysis here). It will not only create a heavier burden on the already burdened lower class (who have greater energy costs compared to disposable income than the middle and upper class), but will have a devastating impact on America’s GDP. The WSJ continues:

The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.

The Heritage Foundation says it well:

In the name of saving our planet from “catastrophic global warming” for future generations, what we’re really doing is ensuring they live in a world with less opportunity and paying for our mistakes through increased debt, all for a change in the temperature too small to ever notice. All of these costs accrue in the first 25 years of a 90-year program that, as calculated by climatologists, will lower temperatures by only hundredths of a degree in 2050 and no more than two-tenths of a degree at the end of the century.

As I’ve said before, the whole point of the ‘green’ movement is control. “Scare/anger/disenfranchise enough people, and they will give you that much more control of their lives and the lives of everyone else.” This legislation, which few in Congress will even read before voting on, is tyranny cloaked as a hero. What is being promoted as the salvation of the world is nothing more than another bureaucratic power-grab. These things are true: Climate change is normal. CO2 is a natural gas. Humans are not destroying the world with carbon emissions. And liberals in Washington DC will stop at nothing to control your life, even if it means forcing us all back into the economic stone ages.

Contact your elected officials today and implore them not to vote for Cap and Trade legislation.

9 thoughts on “Cap and Tax

  1. Sean, Thanks for your blog entry regarding this horrible legislation. You are exactly on target in your analysis of it's potential impact. Our legislators are completely out of control. In these times where many major corporations have shut down pay raises and other forms of financial rewards, the idiots in Washington are doing everything that they can do to control us by taxing us into financial oblivion. Also thanks for the links to our elected representatives. I e-mailed all three of them.

  2. You got it. We all need to be doing our part in letting our elected officials know what the will of the people is, and that the people intend to hold them accountable for their actions as our representatives.

  3. Yes, Ron, you are right. This Fall is going to be a very important time for America. Between the Senate taking up the Cap and Trade Bill and health care reform on the horizon, we have a lot to pray about.

  4. I though you might be interested in this response to my e-mail asking one of my senators to vote "No".

    Dear Mr. Scribner:

    Thank you for sharing your views about energy legislation.

    Effective clean energy legislation will reduce carbon emissions and promote the production of renewable energy—but most importantly it will also ensure the competitiveness of domestic manufacturers, keep utility rates affordable, and create new jobs and industries. We must work to reduce our dependence on foreign oil by making America a global leader in clean energy manufacturing.

    A growing consensus of scientists agree that human activities are contributing to rising sea levels, extreme weather, and climate change across the globe. As the world’s largest emitter of greenhouse gases, the United States has a clear obligation to be at the forefront of climate change policy. Without action, we risk our health and the health of future generations, the well-being of our coastal areas, and the productivity of our farms, forests, and fisheries.

    As climate change legislation continues to be discussed in Congress, I will work to ensure that an unfair burden is not placed on Ohio families and businesses. During this time of economic turmoil, we must ensure that climate legislation is crafted so that it will create new jobs and economic opportunities across Ohio.

    I will certainly keep your views in mind as this legislation moves through Congress. Thank you again for writing.


    Sherrod Brown
    United States Senator

  5. The major problem with senator Sherrod Brown's comment is that these scientist have come to a "consensus" not built on any factual data! By the law of science itself this is rediculous! Scientific evidence is supposed to be provable and the experiement should be able to be duplicated by another scientist. These guys are still at the hypothesis stage. Therefore we are going to be taxed like crazy, have to drive little puddle-jumpers, and forced into renewable energy all on based on a hypothesis. This is plain stupidity.

  6. Brown is a typical liberal Democrat towing the party line. He has said that he will also support the public health care legislation coming up this Fall. He needs to know that Cap and Trade and public health care are disastrous for both Ohio and the rest of the United States and that if he votes for either of them that Ohio's residents will not reelect him in 2012. Don't be afraid to tell him as much, either.

  7. Here's the response I got from my Rep, Gregg Harper (I love Mississippi):

    Dear Mr. Scribner:

    The Democrats' cap and trade energy plan – which should be called "cap and tax" – is a reckless proposal that will do far more harm than good. The simple truth behind the Democrats' energy plan is that it is nothing more than a national energy tax. The bill, H.R. 2454, passed the U.S. House of Representatives on June 26th, by a vote of 219-212.

    The Democrats' energy plan is a national energy tax that will hit nearly every American family and business. If it becomes law, this new national energy tax will be paid by anyone who turns on a light switch or plugs in an appliance. Job losses associated with this legislation are estimated to be between 2.3 and 2.7 million for each of the next 20 years.

    An even greater disappointment is that those hardest hit by this massive tax will be the poor, who experts agree spend a greater percentage of their income on energy consumption than do higher income groups. So while every American will be paying more for energy, low-income households already living on the edge will be hurt even more.

    Shockingly, President Obama understands the negative impact his energy plan will have on families in Mississippi and America. While campaigning to be president, then-Senator Obama said, "Under my plan of a cap and trade system, electricity rates would necessarily skyrocket," and continued by noting those costs would be passed along to consumers.

    "Cap and trade" is promoted as an environmentally friendly plan, but the truth is it will likely push manufacturing plants overseas to countries with far less stringent environmental regulations, in effect exporting pollution to another part of the world and cutting jobs here. Let me be clear, I want to protect our environment, but not at the unnecessary expense of the well being of Mississippi's families and employers.

    Republicans in Congress did offer an alternative bill, The American Energy Act, which was a plan to promote energy independence for the United States. Unfortunately, the Democratic controlled Congress will not allow that plan to be considered in the House.

    Congress should never put your family in a position of choosing between paying for food or paying your light bill. Republicans believe there are better solutions than paying more taxes for fewer jobs and more government. That is why I continue to support an "all of the above" energy strategy that harnesses new technologies, like solar and wind, and increases American energy production from oil, natural gas and nuclear power in an environmentally-safe manner.

    I appreciate you letting me know your thoughts on this important issue. Please feel free to contact my office if I may ever be of assistance to you.


    Gregg Harper
    Member of Congress

  8. After finding the names of the 8 republicans who did vote for the cap & trade legislation (you can find their names on Mark Levin's website), I tried to email them and ask them why they voted yes. I couldn't email all of them because I don't live in their district, but I emailed as many of them as I could. Here's what I said:
    "Dear …
    Why on earth did you vote for the American Clean Energy and Security Act on June 26th? Maybe a better question would be, “Why did you run on a Republican ticket when you clearly side with the Democrats on such an important issue as this?” As Representative Michele Bachmann from Minnesota shared with the House, the American Clean Energy and Security Act will cost the American people $2 Trillion! It will lead to a 2.5 million job loss! It will reduce the standard of living for Americans, and the federal government will have control of every aspect of the American people’s lives! Representative Bachmann could see this. Why couldn’t you? Please either vote for the American people or switch to the Democratic Party. We don’t need anymore Republicans who can’t stand up for the American people."

    I just hope their own constituents are unhappy with them and let them know it.

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