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  • Tomorrow's Cap and Trade Horror Story Today

    The Nation’s Chris Hayes writes:

    Two years in Washington have started to make me feel jaded. I’ve come to expect that even nobly conceived laws will be manipulated and distorted for private ends. But once in a while I hear a story that gives me the queasy feeling that I’m nowhere near cynical enough. Such is the case with the tale of the paper industry and the alternative-fuel tax credit.

    Thanks to an obscure tax provision, the United States government stands to pay out as much as $8 billion this year to the ten largest paper companies. And get this: even though the money comes from a transportation bill whose manifest intent was to reduce dependence on fossil fuel, paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the industry–handsomely–to use more fossil fuel.

    After a short and sweet summary of how paper is made, and how U.S. paper makers are gaming generoues green technology tax credits, Hayes concludes:

    Whether or not Congress gets around to turning off the spigot, the episode is a useful reminder of the persistently ingenious ways the private sector can exploit even well-intentioned legislation. Considering that the success of the Treasury’s recently announced plan to rescue the financial sector depends, in part, on the private sector not gaming the rules, the black liquor story seems particularly germane.

    We also share Hayes’ concerns about Geithner’s plans. But if he thinks the a single alternative fuel tax credit is ripe for private sector exploitation and abuse, he should study carbon cap and trade much more closely.

    Posted in Energy [slideshow_deploy]

    7 Responses to Tomorrow's Cap and Trade Horror Story Today

    1. Betty Hanicke, Kansa says:

      The cap and trade will put a tax on our heating bills thereby taxing everybody including the low income, welfare recipients, middle class as well as wealthy. In other words, it won't miss anyone who pays a heating bill!

    2. Lynn B. DeSpain says:

      As Americans, we need to call for a 'Contintental Congess' immediatly. One of the first things to fix is the pay of our so called Senators and Representatives, along with their benefits.

      They should each be paid the average wage of those that they represent, and receive benefits along the same coarse.

      We need to bring the 'Constitution" back to its original duty of being a set of Laws to keep the Federal Government within boundaries, so that the other fifty Independent Nations under this Common Chater can once again be Free to supervise their own self interest!

      Hozro

    3. RJ Cross, Muncie, I says:

      I can not imagine what our energy bills in Indiana will be as all of our electricity comes from coal fired plants. Obama promised to put the coal companies out of business with higher cost and taxes during his campaign. We need to replace wana be president Bayh and Senile Lugar with people that understand our Indiana needs.

    4. Marshall Hill MI. says:

      I'm with Lynn!

    5. Pingback: Ironic Surrealism v3.0 » Full Video: Lord Monckton Speaks –Obama Poised to Cede US Sovereignty in Copenhagen

    6. Pingback: AntiObamaBlog.com » Cap-n-Trade Gives Obama Strong Man Powers?

    7. Pingback: Video: The Cap and Trade YouTube the Obama Admin. Does Not Want You To See | Conservative Principles Now

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