HOUSE Republican Leader John Boehner

Democrats’ “Cap and Trade” Amounts to a Stealth Energy Tax on Every American

The Administration’s $3.6 trillion budget, which comes on the heels of a $410 billion omnibus spending bill and a $1 trillion “stimulus” spending bill, contains several troubling new government programs, including a highly controversial “cap and trade” scheme which would result in higher energy prices for all Americans.

House Republicans do not believe that raising energy prices is the right answer at a time when the American people are hurting and the economy is in recession.  As Republican Leader John Boehner (R-OH), recently stated:

‘Cap-and-trade’ is code for increasing taxes, killing American jobs, and raising energy costs for consumers.  Middle-class families are struggling during this recession, and the last thing they need is even higher costs of living and weaker job security, which is exactly what ‘cap-and-trade’ would deliver.

The so-called “cap and trade” proposal amounts to a carbon tax, plain and simple.  The plan would cap emissions, such as carbon dioxide, and force companies to purchase “credits” from companies who use less energy to meet the governments’ emissions requirements.  House Republicans agree that we should work together to make real progress in promoting clean air, clean water, and a healthy environment, but “cap and trade” is not the answer.

The Administration’s budget expects to raise $646 billion in “climate revenue” by 2020.  That’s $646 billion in new taxes imposed on coal, oil, and natural gas - which currently provides 85% of America’s energy.   “Cap and trade” would empower bureaucrats in Washington to dictate energy prices and make choices that are best left to free markets and free people.  Proposing new taxes on energy during a recession is not the answer to creating economic growth or job creation.

In fact, Office of Management and Budget Director Peter Orszag admitted on ABC’s “This Week,” that the “cap and trade” program would increase energy prices on all Americans.  Higher energy prices also “may drive jobs to countries where costs are cheaper,” as a recent Wall Street Journal editorial notes.  Energy Secretary Steven Chu has stated that the problem with “cap and trade” is that “a lot of money might flow to developing countries in a way that might not be completely politically sellable.”

Many Democrats in Congress remain skeptical of “cap and trade,” and so far 15 Senate Democrats have signed a letter expressing reservations about the program.

Similar legislation was proposed in the Senate last year, dubbed the “Lieberman-Warner Climate Change Act.”  The Heritage Foundation studied the costs of implementing a “cap and trade” regime under Lieberman-Warner, and found that it would significantly raise energy prices on Americans:

To meet the bill’s targets, consumer energy demand must be driven down, which is achieved through higher prices.  The price per gallon of gasoline is expected to increase by at least 29 percent by 2030: about $1.10 more per gallon based on current prices.  By 2030, average household electricity costs are also expected to increase by $647 annually, and natural gas is expected to increase by $303.

The administration’s energy tax would have a devastating impact on an economy in recession and would limit further economic growth and job creation.  Now is not the time to be raising energy prices on middle-class families and small businesses.

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This entry was posted on Tuesday, March 3rd, 2009 at 2:36 pm and is filed under Cap and Trade. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

8 Responses to “Democrats’ “Cap and Trade” Amounts to a Stealth Energy Tax on Every American”

1. Scholars and Rogues » Boehner: capitalism is taxation Says:
   March 4th, 2009 at 6:22 pm

   […] global warming, politics, taxation [ Comments: none ] House Minority Leader John Boehner (R-OH) stated on March 3 that “‘Cap-and-trade’ is code for increasing taxes, killing Amer… His claim is based on the fact that carbon-intensive energy sources such as coal, natural gas, and […]

2. Phil Sanchez Says:
   March 11th, 2009 at 10:43 am

   Global Warming is a scam. IPCC is a political act backed by junk science to fool the impressionable. It’s real aim is global governance and world socialism. The entire country needs to study this issue.

3. Julie Yaunches Says:
   March 25th, 2009 at 8:29 pm

   The US needs to set an example to the world on how to use energy in a responsible, rational way. Many parts of the world are now following our lead when it comes to this. At the moment are example is to waste energy. The US pollutes more per capita than any other country in the world. With a growing western world striving to achieve what we have here, this is not sustainable. We need cap and trade as a first step in world-wide sustainable energy use.

4. Farmers Want Obama to Make Carbon a Cash Crop Under Climate Law « Renergie’s Weblog Says:
   March 26th, 2009 at 5:05 am

   […] congressional leaders have likened Obama’s cap- and-trade proposal to a tax increase on energy, and the plan may pit coal-producing states against other areas. Farm organizations are […]

5. Marie Says:
   March 28th, 2009 at 1:26 pm

   This is not a good time for Cap and Trade (Tax) the middle class people are suffering enough, we don’t need the extra burden of being taxed more for electricity, fuel and coal products. If we had a great economy, less spending,lower deficit,less big Government I might be for a little more taxation but looking at Obama’s Stimulus Budget is just to overwelming.

6. Velma Jo Friend Says:
   June 22nd, 2009 at 6:03 pm

   No on Cap and Trade! This is an additional and unreasonable tax with the rippling affect of burden to the America people and the economy. Cap and Trade is yet another reason for businesses to move jobs out of this country rather than giving incentives and stimulating them in the effort to help our own economy grow.

7. sue schulte Says:
   June 25th, 2009 at 10:50 pm

   do not vote for this bill

8. Bill JONES Says:
   August 16th, 2009 at 8:46 am

   place a cap and trade on all of the professional ballplayers and golfers so they cant make over 75k per year and also any CEO who makes over 200k per year. Then you will have some money to pay off the debt. Get these salaries back in proportion as to what a middle class person might make a year. have you ever heard of the word called GREED. Try it on for size and see if it fits you

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