The American Energy Solutions Group, chaired by Congressman Mike Pence, hosted an energy summit in Indianapolis yesterday to discuss the proposed cap and trade legislation being pushed through Congress by President Obama. Republicans are less than thrilled with the prospect of a catastrophic tax increase levied on employers in the name of the environment this bill will do nothing to protect.
Under the plan being debated in Congress, the government would effectively recognize the right to emit carbon, limit that right through caps, and sell credits back to industry allowing them to pollute. If a manufacturer wants to go beyond the cap, they can purchase credits from industries that pollute less. All at a healthy profit… for the government.
Over time, the magical theory goes, the caps are lowered and industry is forced to develop new green technology so they can continue supplying whatever it is they make… or they could just go to China and avoid this nonsense altogether.
It’s worth remembering that manufacturers don’t pay higher taxes, their customers do in the form of more expensive cars, energy, and other products with a carbon footprint. Indiana is a state where we like to make things, so we’re especially hard hit under a cap and trade plan.
The good news is that energy producers just have to pay the piper. After all, you can’t produce energy in China, put it on a container ship, and send it to Indiana. Instead, they’ll face massive increases in the cost of energy production and rate payers can expect to get soaked. In Indiana 94% of our energy comes from coal and we will see our energy bills double. That’s the good news.
The bad news is that every other industry subject to cap and trade can move elsewhere, costing us jobs and actually increasing global pollution by forcing them to move to regions with little or no environmental regulation. We know the routine here in Indiana. If manufactured goods become too expensive to produce here, companies will go somewhere else. If you’re skeptical that cap and trade costs jobs don’t take my word for it, read the bill.
On page 761 (of 932) you’ll find the creation of the “Climate Change Adjustment Allowance,” a fancy Congressional term for unemployment due to their deliberate action. The bill itself assumes job loss once it passes so it establishes a new unemployment welfare program to accommodate the victims of environmental protection. How nice, and just in time for a global economic meltdown.
Even before it passes Congress, President Obama is promising the revenue to government-run health care. At a time when Democrats are working to pass this tax increase and a budget that borrows 46 cents of every dollar it spends, this bill seems to be a great stimulus package for China. They’ll be the purchasers of our debt, and will eagerly welcome the industries that flee Indiana. But don’t worry about losing your job, after all, your “Climate Change Adjustment Allowance” check is in the mail.