n May, we warned you that the liberal dominated Congress was getting ready to pass a massive tax scheme called "cap and trade" that even some Democrats believe would cost millions of jobs and substantially increase the utility bills of every family in America. It is, in effect, the first imposition of energy rationing in the United States since World War II by "capping" the amount of carbon dioxide produced by fuels Americans use. As the fuel available is reduced the price rises and Americans will be forced to use less. Independent estimates are that this scheme could cost every American family $3100 in utility bills when fully implemented. To force the bill, H.R. 2454, through the House Energy and Commerce Committee, Chairman Henry Waxman traded "free" carbon dioxide allowances to favored industries in districts represented by Democrats whose votes he needed. Even after all the backroom deals, four Democrats voted against the bill in Committee while one Republican, Mary Bono Mack, voted for it. Now House Speaker Nancy Pelosi is trying to ram this bill through the House before the Fourth of July recess.
For years, Al Gore and his extreme environmental followers, like Nancy Pelosi and Henry Waxman, have tried to get Congress to pass a bill to reduce energy use in the name of "global warming". Many honest liberals supported a "carbon tax" that would simply raise the price of coal, oil and natural gas. But Gore, Pelosi and Waxman knew that this honest approach would never pass. So they devised a complicated "cap and trade" scheme. But the scheme has been exposed by an independent study released May 21 by the respected Charles River Associates. They showed that giving "free allowances" to favored companies and "returning revenue to low-income households" will do little to reduce the effects of the bill, namely to increase the costs of most goods and services Americans have to buy. By 2015, the study estimates 2.3 million jobs lost, a lowering of the average annual wage by $170, and a $730 decrease in the average household's purchasing power. These figures increase dramatically in future years as the bill is fully implemented.
Pelosi and Waxman have gotten as far as they have with this bill by browbeating reluctant Democrats and buying support from some industries by giving away "free" allowances. Pelosi has even refused to allow the tax writing Ways and Means Committee to hold hearings or make changes in the revenue portions of the bill. Even more outrageously, some of the "favored" industries are showing their hand. Duke Energy, a North Carolina-based company headed up by a former Enron executive (Enron helped create the first "cap and trade" scheme) has been lobbying FOR the "cap and trade" bill for over a year. Now they have asked the state utilities commission for a 13.5 percent increase in electric rates. In their filing, Duke Energy cites as one justification the future costs of a cap on greenhouse gas emissions. Duke's actions expose the hypocrisy of those who claim to support this scheme "to save the planet."
We at the American Conservative Union thank you for all you do to support conservative, free-market principles.
