Zombie Cap-and-Trade coming to a utility bill near you soon
Senator’s Lindsey Graham, John Kerry and Joe Lieberman have bought the premise that “carbon = bad”. But being politicians, looking at the economy and understanding the discontent of the voters with both health care reform and cap-and-trade, they’ve decided on a more incremental approach to implementing the latter.
First, they announce that “cap-and-trade as we know it is dead“. Of course cap-and-trade is, at base, a tax on carbon which is now considered a “pollutant” by the anointed. Apparently they believe you’ll believe that since it isn’t a comprehensive, across the board imposition of carbon taxation via the method of cap-and-trade, you’ll buy into the basic lie that this is wholly different.
Then they proffer their plan, which, of course, they claim is nothing like cap-and-trade. Really. It’s not:
Rather than include all major industrial sources of greenhouse gases in one broad economywide cap-and-trade system, the Senate trio will propose different types of limits for different sectors of the economy, beginning with electric utilities and then turning later to manufacturers such as chemical plants and pulp and paper mills.
Said another way, they prefer to tax carbon incrementally and not all at once. And that is the only real difference between Graham/Kerry/Lieberman and cap-and-trade.
The result? Read this finely wrought paragraph carefully to glean the effect:
“The bottom line with utilities is they’ll assume a compliance obligation from day one of the program,” the Senate staffer said, adding that no decisions have been made on how to allocate valuable emission allowances to the power companies except to incorporate an industry recommendation to shuttle revenue toward consumers to help pay for higher energy bills.
You have to love the “nuance” – the intent is to agree with the industry (allow them to raise their rates commensurate with the increase in cost to them) and “shuttle revenue toward consumers to help pay for higher energy bills”. In other words, subsidize consumers to pay for industry’s upgrades to cut carbon dioxide output.
The bottom line is your utility bills are going up from day one of the passage of this bill and the taxpayer – you – will be on the hook to subsidize yourself to pay for the increased cost.
Another in a long line of schemes we simply can’t afford and a convoluted and costly method of implementation.
And eventually, of course, the cost of other products (chemical companies? paper mills?) to include transportation and certainly at some point, gasoline and home heating oil will all be taxed as well.
Transportation fuels can expect a carbon tax that rises based on the compliance costs faced by the other major emitters. Several major oil companies, including Shell Oil Co., ConocoPhillips and BP America, floated the original idea on Capitol Hill, and the Senate trio has evolved their plan by funneling revenue toward transportation projects, reducing fuel consumption and lowering domestic reliance on foreign oil. The Highway Trust Fund is also a potential recipient of the carbon tax revenue, Senate aides said.
A carbon tax, by any other name, is still a carbon tax, isn’t it? And the timing of such legislation is just perfect. If passed anytime soon, the increased costs to industry should hit just about the time they’re beginning to climb out of recession.
As they make their case for the legislation, the three senators plan to tout their effort to incorporate energy and climate proposals into one overall package. And they will highlight the shift on carbon pricing away from cap and trade.
“It will be different from anything that’s been put on the table in the House or Senate to date,” Kerry said last week. “It’ll be comprehensive. And I hope it’ll change the debate.”
But it’s not “different” in the most important aspect – it taxes carbon. The premise is that carbon dioxide is a pollutant. For those who don’t accept the premise as accurate or scientifically valid, this is no different than cap-and-trade. It aims at the same result (taxing carbon) only approaching it in a slightly different and incremental manner.
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