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  • Today’s Calamity: Cap and Trade is a Lobbyist’s Dream Come True

    Under the Waxman-Markey cap and trade program, businesses that emit carbon dioxide and other greenhouse gases must obtain allowance permits from the federal government for every ton of carbon emissions they produce. The government issues fewer allowance permits in each subsequent year to decrease overall emissions, so the permit price rises as the reduction in supply has to meet the same demands.

    During his campaign run, President Obama told Grist: “I believe that, depending on how it is designed, a carbon tax accomplishes much of the same thing that a cap-and-trade program accomplishes. The danger in a cap-and-trade system is that the permits to emit greenhouse gases are given away for free as opposed to priced at auction. One of the mistakes the Europeans made in setting up a cap-and-trade system was to give too many of those permits away.”

    Well, guess what? The Members of Congress in the House of Representatives made the same mistake.

    The Waxman-Markey climate change bill, a 1,427-page special-interest wish list, was put together in such a rush that the allowance permit numbers don’t add up. If you add the percentage of emissions allowances to various special interests in the years 2016 and 2017 and you get a value greater than one hundred percent. That’s right—the bill allocates nearly a billion dollars worth of allowances over and above the emissions “cap” set for those respective years.

    Thousands of lobbyists worked on this bill to secure a piece of the allowance pie. These special interests range from the natural gas industry to the auto industry. Even tropical rainforests made the list. Electric utilities were the big winners, receiving 43.75 percent of the allowances in 2012 and 2013. Petroleum refiners didn’t fare as well, receiving only 2.25 percent of the emissions allowances from 2014-2026. Lobbyists brought their A-game to shape this bill and Members caved into their demands, all but guaranteeing this bill will do nothing for the environment. And it comes at the expense of the ratepayer and the taxpayer.

    With over 12,500 registered lobbyists in Washington, it’s no surprise that this bill turned into a feeding frenzy that was rushed through in the middle of the night and promises more than it can actually hand out. Waxman-Markey is nothing more than a huge energy tax and a handout for special interests.

    You can sign up to have Cap and Trade Calamities delivered right to your email here.

    Posted in Energy [slideshow_deploy]

    5 Responses to Today’s Calamity: Cap and Trade is a Lobbyist’s Dream Come True

    1. Bill San Antonio TX says:

      Waxman and Markey

      The State of Affairs of California and Massachusets, from Sea to Shining Sea.

      If this article was not so depressing I would laugh. Just another multi-prong tax assault on the average Joe.

      I realize these lobbyists are Americans and I would never call them otherwise. But, this kind of activity is worse than organized – (fill in the blank)! The only difference is that "esteemed legislators" write this garbage, pass it into law, and we continue getting (fill in the blank).

      Please, citizens of California and Massachusets, for the nation's sake,vote these people out! They are hurting YOU also.

    2. Pingback: » Financial News Update - 08/28/09 NoisyRoom.net: Where liberty dwells, there is my country…

    3. Bobbie Jay says:

      Theft by swindle is against the law. Have them arrested. There should be a law against exploitation of a fictitious crisis.

    4. Roger S., Ma. says:

      " With over 12,500 registered lobbyists in Washington, it’s no surprise that this bill turned into a feeding frenzy that was rushed through in the middle of the night…. Waxman-Markey is nothing more than a huge energy tax and a handout for special interests."

      "Free" delivery, too, via email, no less?

      Beware — anytime government says something's "free", they've already figured out a way how you're going to pay for it!

      Anytime anybody "gives" you anything that would normally be for sale, look out! Why give something you could easily sell -?- Maybe because you can't -?- Nobody'd be so foolish to buy it -?- Yup, exactly right!

      I call this bill "Taxman-Snarkey": That "the taxman cometh" is obvious, maybe not so that he'll be trailing a host of "snarks" to outnumber all of "the angels on high", and — junior and senior — "devils below", put together. Beware the "Snarks" turning into "Boojums"! Look up (on Google) the "Hunting of the Snark – An Agony in Eight Fits" by Lewis Carroll, and consider it a not-very-far-fetched allegory. Not only might you be amused, you will become worried. I can all but guarantee it! And, you'll know what I meant.

    5. Bill, CO says:

      If this article disturbs you, make sure Congress hears your opinions too at http://dontcapandtradeourjobs.net/?soc=tmtwt.

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