Like I was sayin… you get what you ask for.
Everybody wants to be kind to the environment, however, some would like all Americans to pay a hidden tax to combat the specter of global warming (or climate change, the new ice age, or whatever bugaboo the climate fear-monger’s PR department is using now).
The president’s current budget depends upon and plans for vast revenues from a cap and trade program. Some people assume that corporations will just pay these fees without passing on the expense to customers. This is a very naive way of looking at how businesses work.
Today in the WSJ, there was a great opinion piece that lays out the ramifications for all Americans.
Hit hardest would be the “95% of working families” Mr. Obama keeps mentioning, usually omitting that his no-new-taxes pledge comes with the caveat “unless you use energy.” Putting a price on carbon is regressive by definition because poor and middle-income households spend more of their paychecks on things like gas to drive to work, groceries or home heating.
The bottom 95% of earners will not have their direct taxes raised, but rather the amount that they pay in pass through taxes. A pass through tax is a tax that a company passes along to it’s customers. By the way, all taxes levied on businesses are pass through taxes.
Interestingly enough, this “tax” would not be spread evenly across all Americans. Some will be harder hit than others.
Coal provides more than half of U.S. electricity, and 25 states get more than 50% of their electricity from conventional coal-fired generation. In Ohio, it totals 86%, according to the Energy Information Administration. Ratepayers in Indiana (94%), Missouri (85%), New Mexico (80%), Pennsylvania (56%), West Virginia (98%) and Wyoming (95%) are going to get soaked.
The fact that individual Americans will be required to pay for this type of program seems to not sink in for many Americans.
Many liberal democrats have lamented the drop in oil prices which were impacting all Americans. This cap and trade scheme put forth by the administration is an attempt to push energy prices back up. In another opinion piece in the WSJ, Laura D’Andrea Tyson points out:
Critics of a cap-and-trade system are correct when they claim it will raise the prices of goods and services whose production and use emit carbon. That’s exactly the point: Higher prices are necessary to encourage energy efficiency and the development of renewable energy, to discourage carbon emissions, and to reduce the societal costs of global warming.
Here again is the specter of global warming being put forth as justification for enacting policies that will be detrimental to all Americans. The fact that global average temperatures have been dropping for the last 8 to 10 years doesn’t seem to figure into the calculation.
Slowly but surely, Americans will begin to realize the path we are headed down. I only hope that it won’t be too late to reverse course when they do understand.