How this Fridays vote could put all of us in the poor house!  Getting ‘waxed’ by Waxman’s bill.

.

Cap and Trade.  What is it?  The Government will set a limit or ‘cap’ on the amount a company can pollute.  They pay for emission permits which allows them to emit a certain amount.  If they have to emit more than agreed upon amount they have to buy more credits from someone that willing for a fee to sell.   Companies will have to start ‘trading’ credits if they want to stay in business.  Companies could pay huge amounts or ransoms just to stay in business.

.

Have a hot summer and you could go broke trying to buy credits on the open market.  Unable to finance some pollution improvements on time, you are out of business.  Guess who gets to pay for the permits?  You and me in higher costs to buy products.

.

Meanwhile China is cranking out more pollution than ever and sending it straight to the West Coast.  It takes about two weeks to arrive in California, and they will not have to play under the same rules.  Matter of fact in Lake Tahoe, Chinese pollution is registering at the monitors at the lake.  Fully 1/3 of California’s air pollution comes from China.

.

So what are industry professionals saying about this?  Let’s start with Martin Feldstien, who is an Obama adviser and serves on his economic advisory board.  “It would have a trivial effect on global warming while imposing substantial costs on all American households.  It would raise the cost of living of a typical household by $1,600 a year.”  Feldstien who is a Harvard economist as went on to say that if this bill got enacted it would “kill and chance of an early and sustained recovery.”

CBO Director Douglas Elmendorf said this in front of the Senate Finance Committee on May 7th.  “The cap-and-trade price increases would cost the average household roughly $700 in the lowest income quintile to $2,200 in the higher income quintile.”  This makes it a regressive tax since those making the least will pay a substantially a higher percentage of their incomes.  The CBO also has estimated it will bring in $300 billion to the treasury.

.

What did Obama say about this?  ”Under my plan of a cap and trade system, electricity rates would skyrocket and the cost would be directly passed onto the consumer.”  What???  But that seems to be of no consequence, because we need to make the country greener.  On the gasoline front, those that live in rural areas typically drive 25% more than city dwellers.  Therefore they will pay a substantially higher percentage.  How did the credits get passed out?  85% has already been given out for free.  The remaining 15% will have to be paid for by the only industry that did not receive any.  Oil companies.  They will have to make up the difference in the 85% that were handed out for free.  Do you see where this is headed?

.

So how are our friends in Europe doing with this so far?  Terrible!  So far CO2 emissions are up 1.9% since the inception.    Energy prices have gone up 13%.  Those countries that were given an overabundance of credits like the Netherlands, did nothing to curb pollution as they had no incentive to do so.  But they raised prices anyway to keep up with everyone else.

.

Every industry that relies on any sort of energy has commented in their trade magazine and websites that it will cost the consumer dearly.  In once such publication- the cost of a gallon of gas will rise .60 cents!  Why, because no American company will be able to refine oil and stay competitive with countries that don’t have the same rules  furthering our dependence on foreign oil.  It will cost the US economy more than 100,000 jobs just in the energy producing sector alone.  Oil producing countries are just licking their chops to see this bill pass.  At some point real soon, we will no longer be able to produce our own goods because countries like China, will be able to do it cheaper than us.  Goodbye manufacturing jobs in the USA!

.

In as much as I would like to keep out country clean, this is a revenue grab by the Government which will force you and me to pay more for everything!  Please join with me in contacting your Representative in Congress and stop this economy killing bill.  We can and must do better in greening our country without driving the costs of doing business through the roof.  Can any of you afford another $100 a month in taxes?  I can’t.  Let’s take a step back and listen to the economists and learn from Europe.  It has done nothing for them, and the warnings are dire if this bill gets enacted.

The Paul Smith for Congress website is www.paulsmithforcongress.org
Paul Smith.  Republican Candidate for the 5th Congressional District (Sacramento).