The planning is already underway to impose a sweeping “Green Tax” for any business putting out more than its fair share of carbon dioxide (Co2), and this is going to drive up the cost of everything. Of course, there are those who feel that higher prices will force greater conservation of our resources. Unfortunately, this proposed legislation refuses to recognize free-market ability to address and resolve nearly any commercial issue. By the way, I favor reduced Co2 emission as well, but not with this program.
This Green Tax and Cap-and-Trade program is the big secret debate where “Super Environmentalist Only” get to attend and input. The results will be new country wide tax will be imposed for the emission of carbon dioxide:
“Under a tax, policymakers would levy a fee for each ton of Co2 emitted or for each ton of carbon contained in fossil fuels. The tax would motivate entities to cut back on their emissions if the cost of doping so was less than the cost of paying the tax.” Policy Options for Reducinjg Co2 Emissions by the Congress of the United States - Congressional Budget Office
The CBO report considers only two options. One is the Green Tax mentioned above, and the second is a cap-and-trade program. You undoubtedly have heard Obama, Palozzi (Senate), and Smith (House) mentioning these ideas with great anticipation. You may also remember that the presidential candidate Obama used the phrase “Cap and Trade” in several of his speeches. President Obama still want a “Cap and Trade” bill out of congress, but he has met some stiff resistance to the concpet. The CBO report, dated February 2008 made this statement.
“In contrast, under a cap-and-trade program, policy-makers would set a limit on total emissions during some period and would require regulated entities to hold rights, or allowances, to the emissions permitted under that cap.” Ibid
The CBO proposal is more than impressive. It is a powerful tool to collect fees, fines, and penalties much like the power of the EPA over pollution violators. This would apply to all types of businesses in a kind of rationing like those seen during war times. The goal is ostensibly to reduce the use of fossil fuels by making the price of energy from these source too painful to endure. Everyone should know that energy is the life’s blood of business, and this will ripple through to every consumer as well.
We now have a voluntary system of carbon credit trading going on where businesses calculate their carbon output and then buy carbon offsets. The challenge of setting caps for all the types of businesses across America would be as confusing as the present tax code. It would also create another exchange of trading Co2 credits to those who use more than their share with those who use less.
“Cap and Trade” is certainly a regressive tax forcing American businesses to shackle themselves with more regulations, more intrusion, and more costs of operation. Why not incentivize this issue? Tax credits for Co2 reduction would be a far more enlightened position on the subject. There must be a free-market solution that creates a business coalition to answer this need. Of course, this is all being presented as an emergency and crises, which moves things through Congress with lightning speed and minimizes the opportunity for public notice and discussion.
Global warming is the battle cry. Carbon dioxide has been declared the public enemy causing global warming although there is dissent on this subject as well. Onerous taxes and intrusive regulation should not be the only answer to the challenges we face. Open the doors wide to innovation, incentivize with tax credits, and kill the poisonous snake called Cap and Trade before it sinks its teeth into the ailing taxpayer. We need encouragement, not punishment.