Cap and Tax

Former Alaska Gov Sarah Palin attacked the Administration’s Cap and Trade proposal in an editorial in the Washington Post this morning and she made some very valid, very important points about the problems with Cap and Trade but her argument was focused on energy production.

Here is my “top three” list of problems with Cap and Trade — problems that were not, IMO, given enough emphasis by Gov. Palin:

Problem 1: Now is the Wrong Time!

We have a very sick economy! Manufacturing businesses are being pushed to their limit by an economy that is providing few new opportunities to sell their products at a decent profit. As a result they are reorganizing, freezing wages, laying off workers, stopping their profit sharing and, in many cases, closing their doors. So why now? Why, at this worst time of all is President Obama so determined to add new burdens to our manufacturing industries. Possible answer: His focus is global warming — he doesn’t care about the “bodies” that lay in the path between the problem and the solution!

Problem 2: Cap and Trade is Completely Unilateral

We will be adding financial burdens and creating personal disasters here, in the United States, so we can reduce our Carbon Dioxide (CO2) emissions while the rest of the world continues to pollute. We need an IF statement in our legislation: IF the industrialized countries around the world force their polluters to reduce their emissions by some figure (lets say 10%) we will force our polluters to do the same. If they refuse to do to their economies what Obama is so keen on doing to ours, we are being foolish to punish our economy just because of our president’s pig-headed determination to be “Green” (God how I’m starting to hate that word!).

Problem 3: Cost of Living

Here’s an excerpt from a June 1st editorial in the Washington Post — the editorial is the work of Martin Feldstein who’s resume includes: professor of economics at Harvard University, president emeritus of the nonprofit National Bureau of Economic Research and former chairman (from 1982 to 1984) of the Council of Economic Advisers.

“The Congressional Budget Office recently estimated that the resulting increases in consumer prices needed to achieve a 15 percent CO2 reduction — slightly less than the Waxman-Markey target — would raise the cost of living of a typical household by $1,600 a year. Some expert studies estimate that the cost to households could be substantially higher. The future cost to the typical household would rise significantly as the government reduces the total allowable amount of CO2.”

Oh boy, just what we needed — a raise in our cost of living by a minimum of $133.00 a month. If Cap and Trade becomes a reality, start packing your own lunches and start looking for a used bicycle with a basket, to help save gas on short trips to the store; and maybe you can cut back on some of those medications you’re taking.

There are many other problems with Obama’s proposed Cap and Trade legislation. To start finding out more, start by reading Martin Feldstein’s editorial: Cap-and-Trade: All Cost, No Benefit

Also read an factual, unbiased description of Emissions Trading in How Stuff Works

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