” The cost of doing nothing “, these were the words that Rep. Mike Castle (RINO – De) used to explain his voting in favor of Cap and Trade in the House of Representatives. He said that he had “weighed the cost of doing nothing ” and had decided that Cap and Trade was our best alternative.
Fast forward to yesterday when a memo written by the Treasury Dept. for the White House ,about the impact of Cap and Trade on the American economy, was obtained by the Competitive Enterprise Institute through the Freedom of Information Act , and released to the public.
In the memo the Treasury Dept. spells out all of the things that opponents of Cap and Trade have known all along.
According to the Treasury Dept. memo Cap and Trade will double the economic cost of all environmental regulations to the economy. Cap and trade could lead to the loss of 1% of the country’s Gross Domestic Product or GDP. The loss of 1% of our GDP could create “institutionalized recession” according to some experts.
The memo also makes clear that these higher cost to manufacturers will lead to a rise in the rate of jobs being out sourced. The memo directly mentions such industries as steel, cement, chemicals, glass, plastics, ceramics and any energy intensive industry.
Treasury expects that the Cap and Trade program could bring in between $100 and $200 billion a year in Federal revenue and that the auctioning of credits could bring in another $300 billion. Now we have gotten to the real meat of the issue.
The Treasury Dept. memo clearly advises that the tax on carbon emissions must be high enough to cause enough pain to firms and consumers to force them to lower their emissions.
So the Treasury Dept . admits and the White House agrees that we must be caused pain. Is that what we elect our leaders to do , cause us pain ?
Now in my opinion what Cap and Trade is about, is raising the cost of traditional energy sources , such as , oil , coal and natural gas. This is an attempt to artificially make alternative fuels , such as, solar and wind competitive. What Cap and Trade amounts to is a back door subsidy for these alternative fuels.
The administration is attempting to force a market change through punitive taxes. President Obama hopes to raise the cost of heating your home with oil or electric to the point that those costly solar panels won’t seem so costly anymore. This is his attempt at creating a market for a product that cannot at this time create a market for itself.
This plan will actually have the opposite effect on the alternative energy industry , then all of those environmental wackos out there would hope for.
By making the alternative fuels artificially competitive, by raising the cost of traditional fuels through taxing , all the President will do is to reduce the likelihood of the alternative energy industries working to improve and to reduce the cost of their products. Why should they ? They have the government basically mandating that people must use their product or face punitive taxes. Sounds a lot like his health care plan doesn’t it ?
Cap and Trade will remove competition within the energy industry . When you remove competition , you remove the drive for innovation. Why try to build a better mouse trap if the government is going to guarantee that you will always be able to sell the same old mouse trap.
The Treasury Dept. memo demonstrates that this administration does not care about the pain it inflicts on either the economy or the citizens of this nation.
Cap and Trade will not only affect how much it will cost you to heat your home or to drive your car, but because of the cost that this program will inflict on manufacturers, not only by way of the cost of energy , but through the cost they will have to pay for their carbon emissions as well, which they will pass on to the consumer, this ends up being a tax that will be paid many times on every product that you purchase and don’t think that if the product is produced in another country it will be cheaper, remember that all products get to the stores by way of transportation which will also be paying the higher cost of energy.. This is nothing more than a tax program that will force people out of work and cause the national economy to shrink.
I cannot close without once more reminding the citizens of Delaware and especially my fellow registered members of the GOP that Rep. Mike Castle voted in favor of this bill . This is why I will never again vote for Mike Castle.