Free Markets, Free People

cap-and-trade

Cap-And-Trade = $1,726 Per Family Per Year

That number doesn’t come from some opposition think tank or the CBO. According to CBS, that number is one calculated by the administration as the cost of Waxman-Markey:

The Obama administration has privately concluded that a cap and trade law would cost American taxpayers up to $200 billion a year, the equivalent of hiking personal income taxes by about 15 percent.

A previously unreleased analysis prepared by the U.S. Department of Treasury says the total in new taxes would be between $100 billion to $200 billion a year. At the upper end of the administration’s estimate, the cost per American household would be an extra $1,761 a year.

Interestingly, the Heritage Foundation, a right-wing think tank, put the cost at $1,500 a few months ago and were slammed for using scare tactics to try to defeat the bill. Other estimates range as high as $3,100. Democrats have used $800 a year as their estimate based on a study by MIT’s John Reilly.

The FOIA’d document written by Judson Jaffe, who joined the Treasury Department’s Office of Environment and Energy in January 2009, says: “Given the administration’s proposal to auction all emission allowances, a cap-and-trade program could generate federal receipts on the order of $100 to $200 billion annually.” (Obviously, any final cap-and-trade system may be different from what Obama had proposed, and could yield higher or lower taxes.)

Because personal income tax revenues bring in around $1.37 trillion a year, a $200 billion additional tax would be the equivalent of a 15 percent increase a year. A $100 billion additional tax would represent a 7 or 8 percent increase a year.

Of course, whatever the cost, it will hit those who can least afford it the hardest. What will that mean? Well, if history is any indication, it means a certain percentage of the population will be subsidized by another percentage of the population. Whether in the form of tax credits (unlikely, since the segment of the population likely to need help probably doesn’t pay taxes anyway) or direct subsidization, it will end up as a giant, bureaucratic redistribution scheme riddled with fraud, waste and abuse. For some families the cost will be close to zero. For others it will be well above $1,726 per family when they pay for those subsidies in other taxes.

And Jimmy Carter doesn’t yet understand why people are angry? Buy a clue, Mr. Carter.

~McQ

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CO2 – Is This Where We’re Headed?

Cap-and-trade is only the beginning. France is mulling a CO2 tax on its citizens:

The French government plans next year to begin making heavy users of household and transport fuels bear more of the tax burden. President Nicolas Sarkozy is expected to say in coming weeks that such a shift is necessary to nudge French citizens toward cleaner alternatives.

The tax would reportedly start at about 14 euros (or $20) for each ton of CO2 emitted, and could rise to levels of around 100 euros ($143) for each ton by 2030. That could mean substantial increases in the price of gasoline and diesel, as well as a sizable jump in the cost of keeping homes warm.

Nudge French citizens? What is government doing nudging its citizens toward anything to do with their energy usage? Quite simply government, at least in France, has decided that citizens must conform to its priorities (proven or unproven) and thus uses its power to tax to “nudge” people into the behavior it prefers?

Is that a proper function of government? Only if you believe government is infallible and should be the arbiter of what constitutes the “proper” way of living. Trust me, such a belief has absolutely nothing to do with freedom, choice or liberty.

But skeptics say the idea may have less to do with clean energy, and more to do with a desire on the part of Mr. Sarkozy’s government to find new ways to keep the national debt in check.

Heh … the skeptics may be on to something. We have the same sort of problem in this country which is why I imply that cap-and-trade is only the beginning. Once implemented government will use the precedent (“we’re controlling industrial CO2 emission, now we need to control “private” CO2 emissions”) to tax citizens on their use. It’s all about revenue and this source is perfect – created, literally, out of thin air.

As usual, the socialists in France (and elsewhere) are without a clue:

In addition, members of the opposition Socialist party have slammed the plan, suggesting it would unfairly burden lower income citizens — particularly those who are obliged to use their cars.

Segolene Royal, a former presidential candidate, has instead called for direct taxes on gasoline and other energy companies.

Because everyone knows that a direct tax on “gasoline and other energy companies” would never be passed on to “lower income citizens” who are “obliged to use their cars” and “unfairly burden” them, would they?

~McQ

People Opposed To Cap-And-Trade

As Congress members slink back into Washington DC to get trauma treatment for their townhall wounds, a new Rasmussen poll indicates cap-and-trade legislation isn’t much more popular than health care insurance reform.

The survey of 1,000 adults showed 35 percent of Americans favor the climate change bill, while 40 percent oppose it.

Nearly one adult in four — 24 percent — are not sure whether passage of the bill is a good idea — findings which reflect virtually the same results as in late June.

While that may not seem overwhelming, it changes dramatically when the question of cost to the person being polled is brought up:

On economic impact of the legislation, 56 percent said they are unwilling to pay more in taxes and utility costs to generate cleaner energy and fight global warming, the same number who expressed that opinion in June.

Another poll mirrored the results. Of those polled in a Washington Post/ABC poll 52% supported cap-and-trade legislation, until cost was introduced into the questioning:

When asked if a cap and trade program “significantly lowered greenhouse gases but raised your monthly electrical bill by 25 dollars a month” – then only 39 percent support cap and trade while 59 percent oppose it.

The Heritage Foundation modeled the current pending legislation and found that on average it would increase electricity prices by $32.67 a month. But that’s just part of it:

But that’s just one small chapter in the book on how an average family of four’s pocketbook would be hit. Cap and trade is a massive tax on energy across the board – so your electricity bills will rise and so will everything else – gasoline, natural gas, and home heating oil. Add it up and the family of four energy expenditures increase on average by $69 per month from 2012-2035. Because the carbon caps become more stringent in subsequent years, the costs are highest in 2035 at $103 per month in the form of direct higher energy prices.

And we’re still not done – also added into the mix are the indirect costs these price increases will bring:

The energy tax also hits producers. As the higher production costs ripple through the economy, the household pocketbooks get hit again and again when producers pass costs onto the consumers. If you look at the total energy tax from Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600.

Now that $32.65 a month for the family of four has grown to $248.25 brought on solely by the imposition of cap-and-trade. Add to that the cost of the proposed health care insurance reform, the bailouts, the unstimulating “stimulus” and the pork laden emergency spending bill, plus a 10 year budget that puts us 9 trillion further in debt and you can begin to understand why the American people are angry and the clueless Congress and administration are seeking trauma care.

Like one woman said at one of the townhall meetings, echoing Adm. Yamamoto’s WWII quote, “I think you’ve awakened a sleeping giant”.

I certainly hope so. And if so, hopefully cap-and-trade will go the way of the Dodo bird, and become an extinct idea. Cap-and-trade is based on dubious and unsubstantiated science and it is obviously detrimental to the economic health of this nation. It should be abandoned immediately.

~McQ

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Questions And Observations #5

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For new readers, “QandO” is short for “Questions and Observations”.

  • “Scientific proof” that Islam is the “correct religion” thanks to an electron- microscope. Yes, “molecules took beautiful shapes everytime they are exposed to air vibrations from reading the holy Quran or saying the word islam or the muslim call to prayer.” But is there scientific consensus?
  • Apparently Hamas and al-Qaeda are fighting it out for the Gaza strip. 13 dead and 100 injured. Only al-Qaeda would declare Hamas as being “too liberal”. So how will the San Francisco anti-Israel protesters protest this? My guess is that somehow Bush will be the blame. Also note how hard the report tip-toes around identifying the Hamas opponents as al-Qaeda
  • 60 Brooklyn New York seniors gave Democratic Representative Anthony Weiner an ear-full, with one of them calling him a crook who was trying to bankrupt the country. Weiner’s response? “You have a lot of good talking points”. Yeah, my guess is her “talking points” were in reaction to his talking points. You have to hope the Dems keep handling all of their constituent protesters in such an appallingly ham-fisted manner. Hard to turn old folks in a deep blue district into racist red-necks though, isn’t it?
  • Zomblog does a terrific retrospective of the Bush/Hitler meme during the last 8 years that exposes the faux-outrage of both the media and the left for what it is. It’s a rather interesting reminder of how casual and how widespread it was. Just as interesting is the amnesia that both the media and left are seemingly suffering right now.
  • Lefties are up in arms with Whole Foods CEO John Mackey after he came out in a WSJ editorial against Obama’s health care reform. You see, Mackey’s company self-insures and provides its own health care coverage. And it works. Mackey tops it off by saying we should be moving toward “less government control and more individual empowerment”. Liberals are enraged and boycotting, believing Mackey is biting the hand that fed him. I guess the entrepreneurial capitalist won out over the sniveling collectivist. He knows what got him where he is and it wasn’t government. Me? I’ve never shopped at Whole Foods, but I’m going to now.
  • In all of this health care stuff, let’s not forget about cap-and-trade. The Heritage Foundation has a new analysis out. If the bill is passed and signed into law as is, look for a 58% increase in gas prices, a 90% increase in electricity prices, and a $3000 per family increase in goods and services. At a national level, we’ll see a loss of 9.4 trillion in aggregate GDP between 2012 and 2035 as well as a loss of 2.5 million jobs by 2035. Other than that, it’s a peachy keen bit of legislation.
  • And for our “bad salesman tip” of the week – remember when you’re trying to sell government health care as an alternative to private health care, alway invoke UPS and FedEx as the good example and the USPS as the screwed up example. Heh … sometimes you just have to know when to shut up.
  • Congressman Bart Stupak, D-MI validates the contention that most of the Democrats put party over country. Stupak told Detroit News columnist Frank Beckmann that protests weren’t going to deter him from voting yes on health care. He said, “We’re not going to allow a small, vocal minority to dissuade us (from) our goal.” IOW, “screw you folks, I’m just going through the motions in these townhalls, Nancy Pelosi has my vote”

~McQ

Americans Are Cooling Toward Global Warming

Part of the reason is the financial situation and part of it is the new evidence that science is producing which is making Americans more skeptical about the AGW crowd’s claims.

Recent  Gallup polls carry the news:

Here’s what Gallup found: The number of Americans who say the media have exaggerated global warming jumped to a record 41 percent in 2009, up from 35 percent a year ago. The most marked increase came among political independents, whose ranks of doubters swelled from 33 percent to 44 percent. Republican doubters grew from 59 percent to 66 percent, while Democratic skeptics stayed at around 20 percent.

What’s more, fewer Americans believe the effects of global warming have started to occur: 53 percent see signs of a hotter planet, down from 61 percent in 2008. Global warming placed last among eight environmental concerns Gallup asked respondents to rank, with water pollution landing the top spot.

Another recent Gallup study found that, for the first time in 25 years of polling, more Americans care about economic growth than the environment. Just 42 percent of people surveyed said the environment takes precedence over growth, while 51 percent asserted expansion carries more weight. That reverses results from 2008, when 49 percent of respondents said the environment was paramount and 42 percent said economic growth came first. In 1985, the poll’s first year, 61 percent placed a bigger priority on the environment, while 28 percent ranked economic growth highest.

Scientists have begun to push back against those who have been claiming “consensus” for so long. And, Americans are simply becoming more informed about the matter. Part of that is the effect of the new media which has broken the monopoly hold of the mass media’s ability to shape public opinion. As the poll points out, Americans increasingly think the media is exaggerating the problem. That skepticism has to be based in something, and the only media carrying the skeptical side of the argument is the new media.

Obviously, since the financial meltdown, priorities have also changed. While AGW was apparently never a high priority among environmental priorities, it is dead last now. That’s again because people are becoming more informed about the economic impact of the draconian legislative measures being touted as a solution. And as time goes by, and there is more of a focus put on cap-and-trade legislation, I expect the numbers in opposition to go up even further.

Naturally the opposition disagrees and cites polls from Pew and the National Wildlife Federation that they claim contradict Gallup (no date for those two polls is given). But as you recall, Rasmussen had a very recent poll which had similar results to the Gallup poll.

The radical agenda is in trouble, folks. Whether that means Democrats will “listen” as they claim they do, is another matter entirely. I fully expect them to attempt to ram both health care and cap-and-trade through. But that doesn’t mean we have to give them a pass if they do. Be your “un-American” best and tell them loudly and strongly that cap-and-trade is not a good thing for the US and is not something that should be passed while the science of AGW is decidedly unproven.

Again, what’s the freakin’ rush?

~McQ

Damned Global Warming Skeptics

Why don’t they just shut up!

The science is settled! We have consensus.

Well, except for those 32,000 American scientists who have signed a petition saying they don’t agree that anthropogenic, or man-made, global warming is threatening society as we know it.

And now we have another one – another skeptical scientist who attempts to enlighten the cult of AGW as to how the science actually works.  I’ll let him lay it out:

So why the fuss lately about man-made global warming? The melting Arctic? Do you know we’ve only been monitoring the extent of Arctic ice via satellites since 1979? And while Arctic ice coverage has declined, it’s actually been rising since 2006. And have you heard Antarctic sea ice has increased by nearly 14% since 1979?

The global warming crowd is quick to blame the release of carbon dioxide thru the burning of fossil fuels, such as oil, gasoline, natural gas, and coal, for warming our climate and setting us on a path for doom.

Since before the industrial revolution the amount of carbon dioxide in the atmosphere has been rising, up to around 385 parts per million by volume today. That amounts to a miniscule 0.0385% of the atmosphere. Increased CO2 levels are beneficial to plants since they require carbon dioxide to grow. In this experiment, plants exposed to CO2 levels of 1,090 parts per million by volume by far exhibited the most growth.

So, does carbon dioxide drive the climate? The answer is no!

Natural cycles play a much bigger role with the sun at the top of the list. A look at total solar irradiance since 1600 shows a distinct correlation to temperature readings. Readings are higher now than anytime in the past 400 years!

Then there’s El Nino Southern Oscillation, the North Atlantic Oscillation, the Pacific Decadal Oscillation, the Atlantic Multi-Decadal Oscillation, the Arctic Oscillation, the Pacific-North American Teleconnection, Milankovitch forcing, ocean variations, and so on and so forth.

Is there any way to model all these variables? Again, the answer is no! The Intergovernmental Panel on Climate Change, or IPCC, has tried and failed!

Back in 2001 the IPCC released a suite of computer model solutions depicting the future state of the atmosphere. These reports by the IPCC are used repeatedly to drive policy around the world. But, if you look at what’s happened since then, global temperatures are actually on a downward trend, whether you look at actual thermometer readings across the world or satellite-derived temperatures. This when the IPCC models were predicting continued warming.

Can you believe it? Another one who insists models at least be able to model what is happening by using all the variables? And that the models be able to actually predict what is happening instead of modeling something that isn’t?

What’s up with demands like that?! We’ve heard from the oracle, he’s told us the earth has a fever and that’s that.

Gore said it, enough “scientists” believed it and that ends it!

Now let’s get that cap-and-trade bill through the Senate and save the planet.

~McQ

Gird Thy Self – With Health Care “Reform”, The Tax Man Cometh

It should be abundantly clear by now, to even the slowest among us, that the promise that 95% of Americans wouldn’t see their taxes raised by one dime during an Obama administration was a flat out lie.

Of course, given the promise of health care and the cap-and-tax proposal pushed by candidate and now President Obama, the 95% should have been able to figure out the lie well before the election. But they didn’t.

The Heritage Foundation has laid out the proposed taxes Congress is looking at to fund this 1.5 Trillion “Health Care Reform” legislation being proposed (note: consider this 1.5 Trillion estimate in light of the Medicare estimate back in the ’60s. It was a low ball load of blarney then and I have little doubt that this estimate is a low ball one as well).

Proposed tax hikes in this category[tax the rich - ed.] include: 1) capping the value of itemized deductions including gifts to charities; 2) a 3% surtax on households earning more than $250,000; and 3) a millionaires tax.

But the left is beginning to figure out that you can only squeeze so much revenue from class warfare taxation. So Congress is also considering a slew of other taxes that will, again, force Obama to break his not tax hike promise. These include: 1) a tax on soda; 2) a tax on beer; 3) an increase in employer and employee payroll taxes; 4) a flat tax on health insurance companies; 5) broaden the Medicare tax on investment income; 6) an employer mandate; and 7) a value added tax on everything but food, housing, and Medicare. And we’re sure we missed some.

There’s no other way to “save money on health care” than to tax the hell out of those who will be stuck with the system they cobble together.

Then add cap-and-trade’s impact (and taxes) to the mix and explain how an economy already reeling with a loss of 15 Trillion in wealth is going to recover when more and more of the private sector’s money (and wealth) goes to government?

~McQ

The EPA Says Cap-And-Trade Will Have No Effect Without China

But Energy Secretary Chu, when asked if he agreed with an EPA chart which depicted that, said, without explanation, that he did not:

During a hearing today in the Senate Environment and Public Works Committee, EPA Administrator Jackson confirmed an EPA analysis showing that unilateral U.S. action to reduce greenhouse gas emissions would have no effect on climate. Moreover, when presented with an EPA chart depicting that outcome, Energy Secretary Steven Chu said he disagreed with EPA’s analysis.

“I believe the central parts of the [EPA] chart are that U.S. action alone will not impact world CO2 levels,” Administrator Jackson said.

Sen. James Inhofe (R-Okla.) presented the chart to both Jackson and Secretary Chu, which shows that meaningful emissions reductions cannot occur without aggressive action by China, India, and other developing countries. “I am encouraged that Administrator Jackson agrees that unilateral action by the U.S. will be all cost for no climate gain,” Sen. Inhofe said. “With China and India recently issuing statements of defiant opposition to mandatory emissions controls, acting alone through the job-killing Waxman-Markey bill would impose severe economic burdens on American consumers, businesses, and families, all without any impact on climate.”

You can watch Jackson confirm it and Chu deny it here:

Click through at the first link to see the chart – it’s rather hard to read, but the EPA analysis depicted on it essentially says what Inhofe points out – that without China and India and other developing countries, cap-and-trade will have no beneficial effect on the overall reduction of CO2 emissions.

Of course what’s most interesting is to watch “Mr. Science”, Secretary Chu, reject the EPA’s analysis without offering a single justification for such rejection.

Science over ideology, or so it was promised. It sure isn’t evident in Chu’s one word answer to the question posed to him.

~McQ

Was Colin Powell Wrong?

Colin Powell said that it appeared to him that Americans not only wanted more government services, but were willing to pay for them. Michale Barone, who is probably one of the better poll interpreters out there, looks at a gaggle of them and isn’t so sure Powell is right (Powell has since become concerned with Obama’s expansion of government and spending):

Last month’s Washington Post/ABC poll reported that Americans favor smaller government with fewer services to larger government with more services by a 54 to 41 percent margin — a slight uptick since 2004. The percentage of Independents favoring small government rose to 61 percent from 52 percent in 2008. The June NBC/Wall Street Journal poll reported that, even amid recession, 58 percent worry more about keeping the budget deficit down versus 35 percent worried more about boosting the economy. A similar question in the June CBS/New York Times poll showed a 52 to 41 percent split.

Other polls show a resistance to specific Democratic proposals. Pollster Whit Ayres reports that 58 percent of voters agree that reforming health care, while important, should be done without raising taxes or increasing the deficit. Pollster Scott Rasmussen reports that 56 percent of Americans are unwilling to pay more in taxes or utility rates to generate cleaner energy and fight global warming.

Of course the fun of all this is to try and determine what all of that means. Analysis is then turned into political action – or so it is supposed to go. But the problem is determining what “Americans favor smaller government with fewer services” really means. Like “hope and change” everyone has their own idea of what “smaller government” is, and my guess is it isn’t much smaller than it is now if at all. Instead, poll respondents may be saying they don’t want it to get much bigger.

Probably the most interesting trend in these cited polls is the movement of Independents away from what can only be favoring a big government Democrat. Anyone who actually paid attention to the campaign of Barack Obama and didn’t realize he was a guy who was fully invested in big government and sweeping federal programs shouldn’t have voted.

Reality is here now. All the “hope and change” hoopla has finally boiled down to intrusive and very expensive government programs such as cap-and-trade and health care reform. The election bill is coming due. Yet, if these polls are to be believed, the majority of Americans – while still favoring Obama personally with high approval ratings – are not at all happy with the direction the Democrats are taking the country.

This apparent recoil against big government policies has not gone unnoticed by Americans. Gallup reported earlier this week that 39 percent of Americans say their views on political issues have grown more conservative, while only 18 say they have grown more liberal. Moderates agreed by a 33 to 18 percent margin.

What has driven much of this shift in opinion is the economic downturn and the problem the average American has understanding the huge deficit spending policies of this administration. He certainly understands that the same policies applied to his household would be an unmitigated disaster. So common sense opposes deficit spending, especially at the unheard of levels this administration has committed itself too. Thus far, too, the economy hasn’t responded, and job losses continue unabated. As with all politics, the proof of any policy is in its execution, and the execution of the stimulus has been awful, to be charitable.

That leads to a loss of confidence. But it also leads to a little soul searching on the part of those who’ve agreed, with their vote, to give the Democrats a chance. They’re now beginning to wonder if they made a mistake. The economy is tanking, unemployment is 2.5 points above where they said it would be unless they passed the stimulus, and they’re talking about tacking two monstrous tax and spend programs (cap-and-trade and health care) on top of it all.

No wonder the nation is growing more “conservative”. Of course, again, it is up to the political analysts to try to determine what “more conservative” really means and convert that to votes for their side. I have every confidence that the GOP won’t have a clue how to do either the analysis or the conversion, but these polls seem to indicate that there is a lot for the right to exploit politically. However, distracted by the Palin/Sanford/Ensign nonsense, and without a strong voice to make their case, I’m sure they’ll miss this opportunity completely.

That’s not to say the Democrats won’t self-destruct as they’ve always done in the past, however, Republicans need to rally and stop both cap-and-trade and health care “reform” in their tracks. It seems, if these polls are to be believed, that they have the support of the public. The question is, do they have the ability to form the necessary political coalitions to stop this huge expansion of government in Congress or not? If not, taking it apart later isn’t as easy as one thinks. Very few programs, once passed into law, are ever discontinued at a later date.

However, the unfortunate part is if the GOP does successfully stop this legislation, they’ll be roundly demonized by the left, something the left does very well and the GOP defends against very poorly. Their inclination, then, is compromise. And that means accepting the premise the Dems are floating but trying to make its impact smaller and less intrusive. That, most likely, will be what we’ll end up with – and if so, the GOP will deservedly be tagged as a “bi-partisan” part of the disaster that follows and will have killed their only possible electoral advantage.

If the GOP wants back in this thing, they’ve got to assume Colin Powell was wrong (and the polls seem to suggest that), reject the premises contained in both cap-and-trade and health care reform completely and unify as the “party of smaller and less intrusive government”. That’s how they regain power. To retain it, however, they’ll have to walk the smaller government walk instead of, as they did last time, becoming Democrat-lite. And that’s where they always fail.

~McQ

Rep. Waxman: Against the President = Traitor

Funny how the same people who threw hissy fits when challenged on actually rooting for the War in Iraq to fail, now find it perfectly acceptable to question anyone’s patriotism who doesn’t step in line with a hearty “Jawohl!” Well, more sad than funny really:

Rep. Henry Waxman (D-Calif.), who has had an eventful couple of weeks to say the least, believes House Republican opposition to climate change legislation and the stimulus indicates they’re cheering against the good ol’ US of A.

“It appears that the Republican Party leadership in the Congress has made a decision that they want to deny President Obama success, which means, in my mind, they are rooting against the country, as well,” the powerful House Energy and Commerce Committee chairman told WAMU radio host Diane Rehm on Tuesday morning, promoting his new book, “The Waxman Report.”

Just to be clear, opposition to the President’s agenda means that you also oppose America, according to Waxman. Doesn’t that mean that Waxman and most of the rest of his Democratic allies, including our current President, were “against America” for not supporting Bush’s agenda?

Ah well. That was a different time, I guess. Things are so completely different now that questioning one’s patriotism is absolutely justified. At least that’s what Steve Benen seems to think:

This sounds like intemperate rhetoric, but under the circumstances, it’s hardly over the top.

It’s not immediately clear what “circumstances” we’re under that render such accusations perfectly acceptable to Benen, but one can’t help but recall Obama’s famous call to bi-partisanship: “I won.”