Cap and Tax Articles

Reducing greenhouse gas emissions is a bipartisan policy objective that deserves careful debate and examination. But Democrats in Congress seem to think that dramatically driving up the cost of energy through a “cap and tax” program is the best way to achieve that goal.

 

This summer, House Democrats approved legislation introduced by Congressmen Henry Waxman (D-CA) and Ed Markey (D-MA) that aims to reduce carbon dioxide emissions. The bill caps the total amount of greenhouse gases that certain sectors of the energy industry may emit, allowing producers to purchase permits for the carbon dioxide they release. Caps become more stringent – and credits more scarce – as the bill’s provisions are implemented.

 

Let’s reveal Waxman-Markey for what it is: an enormous new national energy tax.

We all know that when taxes are raised on a good or service, you pay more to get less. Energy costs inevitably will go up, with the Heritage Foundation estimating that by 2035, gasoline prices are projected to increase 58%; heating oil will go up by 56%; and the cost of electricity will skyrocket by 90%.

 

From summer 2008, we remember well that high energy prices severely depress economic growth. Inevitably, when these costs rise, the economy contracts – and jobs are lost. Heritage expects total GDP to fall by $9.4 trillion through 2035. From a budgeting perspective, the group also anticipates that Waxman-Markey will result in the national debt rising by an additional $12,803 per person.

 

Waxman-Markey will cripple our economy by directly driving up energy prices, and raising the cost to produce and transport American-made goods. Meanwhile, China and India – which have resisted entreaties to reduce their carbon emissions – will remain among the world’s leading greenhouse gas producers.

 

With reports indicating that the bill will reduce global temperatures by only .05° Celsius over the next 40 years, Waxman-Markey is clearly not worth the devastation it will cause to our economic future.

 


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